Barbara flynn is in charge of maintaining hospital supplies, Operation Management

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Barbara flynn is in charge of maintaining hospital supplies

Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was 60 (and was normally distributed). Furthermore, the standard deviation for BX-5 was 7. Ms. Flynn would like to maintain a 90% service level.

a) What safety stock level do you recommend for BX-5?

b) What is the appropriate reorder point?

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Operation Management: Barbara flynn is in charge of maintaining hospital supplies

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