KVS Pharmacy stocks a popular brand of over the counter flu and cold medicine. The average demand for the medicine is six packages per day, with a standard deviation of 1.2 packages. A vendor for the pharmaceutical company checks KVS’s stock every 60 days. During one visit, the store had eight packages in stock. The lead time to receive an order is five days. Determine the order size for this order period that will enable KVS to maintain a 95% service level.

KVS Pharmacy stocks a popular brand of over the counter flu and cold medicine. The average demand for the medicine is six packages per day, with a standard deviation of 1.2 packages. A vendor for the pharmaceutical company checks KVS’s stock every 60 days. During one visit, the store had eight packages in stock. The lead time to receive an order is five days. Determine the order size for this order period that will enable KVS to maintain a 95% service level.

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Description: KVS Pharmacy stocks a popular brand of over the counter flu and cold medicine. The average demand for the medicine is six packages per day, with a standard deviation of 1.2 packages. A vendor for the pharmaceutical company checks KVS’s stock every 60

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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