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Unformatted text preview: $20. The Hospital has a targeted service level of 90% for these bandages. CGH is open 365 days per year. (a) What is the reorder point for the JY-25 bandages? 255 cases (b) What is the total annual cost associated with Ms. Philip’s current policy of ordering 200 cases? $6,589 / year (c) How much could be saved by ordering the EOQ amount? $1,187.71 / year 3. Demand during a product’s lead time is 218 units with a standard deviation of 40 units. If the reorder point is 300 units, what is the service level? 97.98%...
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This note was uploaded on 04/11/2011 for the course WCOB 2023 taught by Professor Billthompson during the Spring '07 term at Arkansas.
- Spring '07