uestion 5 (2 points) The Mercer City Hospital is currently using a continuous re

Question

uestion 5 (2 points) The Mercer City Hospital is currently using a continuous review system to control its inventory, One of the items in inventory is an elastic band. The average demand for this item is 200 boxes per week, and the standard deviation in weekly demand is 50 boxes. If the lead time is 3 weeks and the hospital wants a 99 percent cycle-service level, what is the reorder item? O a) greater than 750 boxes but less than or equal to 850 boxes O b) greater than 850 boxes O c) less than or equal to 650 boxes d) greater than 650 boxes but less than or equal to 750 boxes Save

Explanation / Answer

The reorder point for the elastic band in the Mercer City Hospital inventory would be:

b) greater than 850 boxes

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