-Xènia Berrio-

Proposed exercise:

A hospital maintains in stock a resuscitation device that has a normal distribution. The average demand during the delivery period is 350 devices and the standard deviation is 10 devices. They decide to maintain a level of security stock that guarantees a level of service of 95%. The lead time is 2 days.

  1. What is the security stock to keep?
  1. What is the reorder point?

Proposed solution: 

  1. SS = Z*σ = 1,65*10 = 16,5 devices
  2. ROP = d*LT+SS = 350*2+16,5 = 716,5