How much total safety stock would be required


Question: At a local hospital, Dailey demand for hypodermic needles is normally distributed with a mean of 14 cases and a standard deviation of 3 cases. The average lead tine for replenishment for this item from a regional medical products distributor is 2 days with a standard deviation of 1 day. In an effort to save on inventory costs, the hospital is considering consolidating its safety stock of hypodermic needles with that of 5 other nearby hospitals. If each hospital has identical demand and all use the same regional medical products distributor, how much total safety stock would be required for all 6 hospitals to achieve a service level of 99.8 percent? Assume the lead time parameters are the same for all 6 hospitals.

 

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Other Subject: How much total safety stock would be required
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