Caring Hospital's dispensary reorders doses of a drug when the supply on hand falls to 18 units. Lead time for resupply is three days.Given the typical usage over the last 10 days, what service level is achieved with the hospital's reorder policy? (Hint. Use the followingformula.) (Do not round intermediate calculations. Round your "z" value and final answer to 2 decimal places.)Use Table.ROP =dLT +2 (od) √LTDayUnits132 344 7 5Service levelClick here for the Excel Data File55%66748394105

The following information is given to us: Based on this information we can calculate the value of…

Answered: Caring Hospital's dispensary reorders…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 112, 500 units per year, an ordering cost of $3 per order, and carrying costs of $1.20 per unit. a. What is the economic ordering quantity? b. How many orders will be placed during the year? c. What will the average inventory be? d. What is the total cost of ordering and carrying inventory?
Dalia, the office manager of a desktop publishing outfit, stocks replacement toner cartridges for laser printers. Demand for cartridges is approximately 30 per year and is quite variable (Le., can be represented using the Poisson distribution). Cartridges cost $100 each and require three weeks to obtain from the vendor. Dalia uses a (Q, r) approach to control stock levels (a). If Dalia wants to restrict replenishment orders to twice per year on average, what batch size Q should she use? If she wants to ensure a service level (i.e., probability of having the cartridge in stock when 2 out of 2 needed) of at least 98 percent, what reorder point r should she use? (Hint: Use Table 2.6.(b). If Dalia is willing to increase the number of replenishment orders per year to six, how do Q and r change? Explain the difference in r.
A small grocery store sells fresh produce, which it obtains from a local farmer. During the strawberry season, demand for fresh strawberries can be reasonably approximated using a normal distribution with a mean of 36 quarts per day and a standard deviation of 7 quarts per day. Excess costs run .40 cents per quart. The grocer orders 42 quarts per day.Use Table. What is the implied cost of shortage per quart?
You sell Candy Corn each year. You have averaged 3,343 pounds of candy corn sold each year with a standard deviation of 130. You desire a 55% service level. How many pounds of candy corn do you order this year? Type your answer.....
27) Ali has a restaurant where the customers use a different number of disposable cups each day he is open. Every 30 days, Ali places an order to replenish his cup inventory. It takes 3 days for the order to arrive, at which point it brings the inventory level up to 4000 cups. It costs Ali $30 to have the order processed. Select all statements that apply to Ali's situation: Group of answer choices a) Ali uses a Continuous Inventory System b) d is constant c) Ali uses a Periodic Inventory System d) Ali uses a Fixed-Order-Quantity Inventory System e) Maximum Inventory Level is constant
Given that: Sales = $300,000,000 Transportation cost = $15,000,000 Warehousing cost = $4,000,000 Inventory carrying cost rate (W) = 30% Cost of goods sold = $95,000,000 Other operating costs = $55,000,000 Average Inventory (AI) = $15,000,000 Accounts receivable = $35,000,000 What is the total operating cost? Group of answer choices 56,500,000 48,500,000 75,500,000 78,500,000 68,500,000
Chicago's Hard Rock Hotel distributes a mean of 1,000 bath towels per day to guests at the pool and in their rooms. This demand is normally distributed with a standard deviation of 95 towels per day, based on occupancy. The laundry firm that has the linen contract requires a 4-day lead time. The hotel expects a 98% service level to satisfy high guest expectations. Refer to the standard normal table for z-values. a) What is the reorder point? towels (round your response to the nearest whole number). towels (round your response to the nearest whole number). b) What is the safety stock? Z-Table Z 0.38 0.50 0.67 0.84 1.04 1.28 1.41 1.56 1.65 1.75 2.06 2.33 Pr(Z) 65 69 75 80 85 90 92 94 95 96 98 99
Increases in lead time ________reorder points. Group of answer choices Decrease Have no effect on Increase
The following data represent the beginning inventory and, in order of occurrence, the purchases and sales of Meow, Inc. for an operating period. Units Unit Total Units Cost Cost Sold Beginning Inventory 50 $62 $3,100 Sale No. 1 40 Purchase No. 1 30 50 1,500 Sale No. 2 32 Purchase No. 2 40 44 1,760 Totals 120 $6,360 72 Assuming Meow, Inc. uses LIFO perpetual inventory procedures, the ending inventory cost is:
A manufacturer of hospital supplies has a uniform annual demand for 80,000 boxes of bandages. It costs $20 to store one box of bandages for one year and $320 to set up the plant for production. How many times a year should the company produce boxes of bandages in order to minimize the total storage and setup costs? Question content area bottom Part 1 The company should produce boxes of bandages enter your response here time(s) a year.
Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was 70 (and was normally distributed). Furthermore, the standard deviation for BX-5 was 7. Ms. Flynn would like to maintain a 90% service level. Refer to the standard normal table for z-values. a) What safety stock level do you recommend for BX-5? Safety stock = units (round your response to the nearest whole number).
Explain the following based on Demand Management Demand Management Independent Demand Dependent Demand Random Variations Safety Stocks

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