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.
- What is the security stock to keep?
- What is the reorder point?
- SS = Z*σ = 1,65*10 = 16,5 devices
- ROP = d*LT+SS = 350*2+16,5 = 716,5