SQU hospital orders a medicine that costs 4 OMR per unit. The annual holding cost per unit is 20 percent of the unit price of the medicine. Ordering cost is 100 OMR per order. The lead time is 2 weeks, and the weekly demand during the lead time is random, following normal distribution with a mean 30 units and a standard deviation of 5 units. Assume there are 52 weeks in a year. If the continuous review policy is followed, then what should be the Reorder level, if the hospital only permits 15 percent probability for stockout? Round-up to the nearest integer. O a. 68 O b. 77 O c. 70 O d. 66 e. None is correct
SQU hospital orders a medicine that costs 4 OMR per unit. The annual holding cost per unit is 20 percent of the unit price of the medicine. Ordering cost is 100 OMR per order. The lead time is 2 weeks, and the weekly demand during the lead time is random, following normal distribution with a mean 30 units and a standard deviation of 5 units. Assume there are 52 weeks in a year. If the continuous review policy is followed, then what should be the Reorder level, if the hospital only permits 15 percent probability for stockout? Round-up to the nearest integer. O a. 68 O b. 77 O c. 70 O d. 66 e. None is correct
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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![SQU hospital orders a medicine that costs 4 OMR per unit. The annual holding cost per unit is 20 percent
of the unit price of the medicine. Ordering cost is 100 OMR per order. The lead time is 2 weeks, and the
weekly demand during the lead time is random, following normal distribution with a mean 30 units and a
standard deviation of 5 units. Assume there are 52 weeks in a year. If the continuous review policy is
followed, then what should be the Reorder level, if the hospital only permits 15 percent probability for
stockout? Round-up to the nearest integer.
a.
68
b. 77
O C.
70
d. 66
O e.
None is correct](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Febbcd9b8-ad7d-4df8-afe7-1932f242cef1%2Ffe3abb23-1120-431f-9f42-d8e0462d1dd7%2Far20p7l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:SQU hospital orders a medicine that costs 4 OMR per unit. The annual holding cost per unit is 20 percent
of the unit price of the medicine. Ordering cost is 100 OMR per order. The lead time is 2 weeks, and the
weekly demand during the lead time is random, following normal distribution with a mean 30 units and a
standard deviation of 5 units. Assume there are 52 weeks in a year. If the continuous review policy is
followed, then what should be the Reorder level, if the hospital only permits 15 percent probability for
stockout? Round-up to the nearest integer.
a.
68
b. 77
O C.
70
d. 66
O e.
None is correct
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