Peter Sagan is in charge of maintaining hospital supplies at Champs Hospital. During the past year the mean weekly demand for a special type of tubing was 186 packages of this tubing with a standard deviation of 13 packages of tubing. The lead time for receiving this tubing from the supplier is 1.5 weeks. Peter would like to maintain a 95% service level and places an order for 750 packages every time an order is placed.a) How much safety stock should be used for a 95% service level?b) If the weekly demand is 186 and there is a 1.5 week lead time - what is the reorder point (95% service level)?c) How much safety stock should be used for a 99% service level?

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Answered: maintaining hospital supplies at Champs…

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Peter Sagan is in charge of maintaining hospital supplies at Champs Hospital. During the past year the mean weekly demand for a special type of tubing was 186 packages of this tubing with a standard deviation of 13 packages of tubing. The lead time for receiving this tubing from the supplier is 1.5 weeks. Peter would like to maintain a 95% service level and places an order for 750 packages every time an order is placed.
a) How much safety stock should be used for a 95% service level?
b) If the weekly demand is 186 and there is a 1.5 week lead time - what is the reorder point (95%

service level)?