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Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Given scenario
A hospital is administering a polio vaccine (“polio drops”) to children under the age of 5 in Mexico. It costs the hospital $2 to purchase one shot, and they charge $3 for administering it to a child. Unused vaccines are destroyed. The hospital management needs to decide the number of vaccines to be ordered. Since the hospital has been administering these shots for the last 6 years (24 quarters), they have been able to compile the demand for the vaccine.
Determine the optimal service level and optimal order quantity, for the vaccine.
Quarter |
Demand |
1 |
15 |
2 |
18 |
3 |
21 |
4 |
15 |
5 |
17 |
6 |
22 |
7 |
20 |
8 |
16 |
9 |
22 |
10 |
18 |
11 |
25 |
12 |
15 |
13 |
26 |
14 |
29 |
15 |
16 |
16 |
30 |
17 |
17 |
18 |
25 |
19 |
18 |
20 |
16 |
21 |
19 |
22 |
23 |
23 |
20 |
24 |
15 |
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