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General Hospital uses disposable diapers at a rate of 200 per day, with a standard deviation...

General Hospital uses disposable diapers at a rate of 200 per day, with a standard deviation of 20. To place and receive a replenishment of diapers from the third-party logistics provider typically takes three days. The hospital never wants to run out of diapers, so it holds enough safety stock to ensure 99.9 percent availability. Hospital purchasing managers order diapers along with other items every 30 days. It is time to place an order, and there are 800 diapers on hand. How many units should be ordered?

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Answer #1

Order quantity,

Q = (3days safety stock - Present stock) + 30days stock+ next order 3days safety stock

Lead time 3 days. so, mean l = 38200 - Goo Stordar deviction, a = 3x20 = 60 z-value for 99.9 %. in 3.09. Za Ine - LG00 - 3.09

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