Business, 07.07.2020 18:01 lucyfox8165

Highland Drugs, Inc. sells a variety of health and beauty aids. A particular shampoo costs Highland $2.75 per bottle. Using a continuous review system, an order quantity of 350 bottles per order is recommended. The store operates 52 weeks per year. Lead time is two weeks and the demand for the product per week can be estimated as normally distributed with a demand of 62 bottles and a standard deviation of 6 bottles. a) What is the reorder point if the company wants to have a 1% risk of stock out? b) How much safety stock does the company hold? c) What is the standard deviation of demand during lead time (sigma_dlt)? d) If the company holds 10 bottles of safety stock, what service level policy would the company be using (e. g. enter 98.2% as 98.2)?

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Highland Drugs, Inc. sells a variety of health and beauty aids. A particular shampoo costs Highland...