Barbara Flynn is in charge of maintaining hospital supplies at General Hospital.

Question

Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was 60 (and was normally distributed). Furthermore, the standard deviation for BX-5 was 6. Ms. Flynn would like to maintain a 90% service level. Refer to the standard normal table for z-values. What safety stock level do you recommend for BX-5? Safety stock = 8 units (round your response to the nearest whole number). What is the appropriate reorder point? Reorder Point = units (round your response to the nearest whole number).

Explanation / Answer

Lead-time demand = µ = 60

Standard deviation, L = 6

Service level, CSL = 90%

Z value for the 0.90 is 1.28 (from Standard Normal distribution table)

Safety stock = z*L = 1.28 * 6 = 7.68

Safety stock = 8 units

Reorder Level = Lead-time demand (µ) + Safety stock

ROL = 60 + 8 = 68 units

Rodrer point = 68 units

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.