Demand for a Product Is Relatively Constant at Five Units

question 5

Essay

Demand for a product is relatively constant at five units per day.Lead time for this product is normally distributed with a mean of ten days and a standard deviation of three days.
(a)What reorder point provides a 50 percent service level?
(b)What reorder point provides a 90 percent service level?
(c)If the lead time standard deviation can be reduced from 3 days to 1,what reorder point now provides 90 percent service? How much is safety stock reduced by this change?

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Definitions:

Sequela

A condition that is the consequence of a previous disease or injury.

Seventh Characters

A term often used in medical coding to provide additional information about the encounter or the phases of care.

Initial Encounter

The first time a patient meets with a healthcare provider for treatment or evaluation of a particular condition or health concern.

Malunion

A fractured bone that did not heal correctly; healing of bone that was not in proper position or alignment.