a) Determine the order size that will enable the drugstore to maintain a 95% service level.

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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QUESTION 6
The Corner Drug Store fills prescriptions for a popular children's antibiotic, amoxicillin. The
daily demand for amoxicillin is normally distributed, with a mean of 200 kilograms and a
standard deviation of 80 kilograms. The vendor for the pharmaceutical firm that supplies the
drug calls the drugstore pharmacist every 30 days to check the inventory of amoxicillin.
During a call, the druggist indicated that the store had 60 kilograms of the antibiotic in stock.
The lead time to receive an order is 4 days.
a) Determine the order size that will enable the drugstore to maintain a 95% service level.
Transcribed Image Text:QUESTION 6 The Corner Drug Store fills prescriptions for a popular children's antibiotic, amoxicillin. The daily demand for amoxicillin is normally distributed, with a mean of 200 kilograms and a standard deviation of 80 kilograms. The vendor for the pharmaceutical firm that supplies the drug calls the drugstore pharmacist every 30 days to check the inventory of amoxicillin. During a call, the druggist indicated that the store had 60 kilograms of the antibiotic in stock. The lead time to receive an order is 4 days. a) Determine the order size that will enable the drugstore to maintain a 95% service level.
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