B) double C) decrease by a factor of two D) remain the same 6. A hospital\'s bio
ID: 383590 • Letter: B
Question
B) double C) decrease by a factor of two D) remain the same 6. A hospital's biomedical repair shop uses a 6-week periodic system to maintain the inventory on the blood pressure cuff repair parts. They use an average 48 adult arm cuffs with a standard deviation of 10 cuffs every six weeks. Cuffs aren't the most critical item they carry, but the manager would like to avoid the embarrassment of a stock-out at least 97.5% ofthe time. what should their restocking level be? (You can round up) A) 68 cuffs B) 58 cuffs C) 54 cuffs D) 48 cuffs 7. The manager of a bakery orders three cake-to-go' wedding cakes every Saturday to accommodate last minute purchases. The cakes cost $10 each to prepare, and they sell for $18 each. Any cakes that haven't been sold by the end of the day are sold for half price the next day Usually, half of those are sold and the rest are tossed. What is the optimum stocking level SAMSUNG 4 5 6 7 8 9Explanation / Answer
6.
Correct Answer:
A.68 cuffs
Working note:
Safety stock = Z*Standard deviation
Value of Z at 97.5% service level = 1.96 (as per the normal distribution table)
Thus, Safety stock =1.96*10 = 19.6 or 20 units of cuffs
So, restocking level = 48+20 = 68 units of cuffs
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