17) The demand at Shands for a specialized surgery pack is 100 per week, virtual
ID: 375317 • Letter: 1
Question
17) The demand at Shands for a specialized surgery pack is 100 per week, virtually every week. The lead-time from Gainesville Surgery Equipment Company, its main supplier, is normally distributed, with a mean of 8 weeks for this product and a standard deviation of 2 weeks. A 90% weekly service level is desired. What is the ROP in this case? Assume a Z-score of 1.28 is associated with a 90% service level.
A) 1670 B) 1407 C) 1390 D) 1056 E) None of the above are within 1 unit of the correct answerExplanation / Answer
option A is correct, where the total ROP is aproximately $1670, where the remaining options are wrong. the total ROP is $1670.
hence otpion A is correct, and the remaining all are wrong, i think the calculation and explanation is not required to you.
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