4 b. c. 20 7. Demand for dishwasher water pumps is 8 per day. The standard devia

Question

4 b. c. 20 7. Demand for dishwasher water pumps is 8 per day. The standard deviation of demand is 3 per day a. 10 d. 40e. 44 and the order lead time is 4 days. The service level is 95%, what should the reorder point be? a. b. 24 . 32 d. 36e. more than 36 A pharmacy dispenses a generic drug at an average rate of 50 milligrams per day. An examination of pharmacy records suggests that daily demand is approximately normal and has a standard deviation of 5 milligrams per day. Lead time is four days, and the pharmacist wants a 99 % customer service level. 8. a. The reorder point is b. 200 c.210 d. 211.65 e. 246.6 223.3 How much safety stock should be carried? 23.3 What service level would a reorder point of 215 milligrams provide? 9. b. 0 c.10 d. 11.65 e.46.6 a. 10. a. 93.32% 16.68% d. 509, 100% 43.32% b. e. c.

Explanation / Answer

Demand (D) = 8

standard deviation (SD) = 3

Lead time (LT) = 4

service level = 95%. z value for 95% is 1.65

Re-order level = D*LT + z*SD*sqrt(LT) = 8*4 + 1.65*3*sqrt(4) = 32 + 1.65*3*2 = 41.9

Ans E

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