Chromatica ear-nose-throat

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Reference no: EM133959101

Question

1. Chromatica Ear-Nose-Throat (ENT) Hospital uses 400 boxes of special-order bandages on average per week. Dr. Stefani Germanotta has provided you data, which indicates that usage (i.e., demand) is normally distributed with a standard deviation of weekly usage being 100 boxes. Dr. Germanotta's colleague Dr. Grande has calculated, based on past deliveries, that the lead-time from the only supplier for these specialized bandages is 4 weeks.

Indicate, showing your calculations, the safety stock that is necessary if Chromatica Hospital administration has opted to use the continuous review (i.e., fixed-order quantity) inventory system, and a 97% service level? Use z=1.9 for 97% service level, and round your final response to the next whole number.

2. Indicate, showing your calculations, what should be the reorder point including the safety stock you calculated in the previous question. Round your final response to the next whole number.

Reference no: EM133959101

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