The Main Street Pharmacy fills prescriptions for a popular antibiotic medicine. The daily demand for the anti normally distributed with a mean of 200 pills and a standard deviation of 80 pills. The Vendor that supplies t to the pharmacy calls the pharmacist every 4 weeks to check the inventory of the antibiotic in the store. The receive an order of the antibiotic from the vendor is 4 days. Due to the importance of this drug, the pharmac adopted a 98% service level policy. The Pharmacy and Vendor operate 7 days a week, 52 weeks per year. A) During one call, the pharmacist informed the vendor that 300 antibiotic pills remained in stock. What replenishment quantity should the pharmacist order?

A local distributor for a national tire company expects to sell approximately 200 steel-belted radial tires of a certain size and tread design next year. Annual carrying cost is $20 per tire, and ordering cost is $5. The distributor operates 200 days a year. What is the Total Cost?

Investigate the effects of demand variability on the overall effectiveness of the Wilson approach in inventory management.

The manager of a car wash received a revised price list from the vendor who supplies soap, and a promise of a shorter lead time for deliveries. Formerly the lead time was four days, but now the vendor promises a reduction of 25 percent in that time. Annual usage of soap is 4,500 gallons. The car wash is open 360 days a year. Assume that daily usage is normal, and that it has a standard deviation of 2 gallons per day. The ordering cost is $30 and annual carrying cost is $3 a gallon. The revised price list (cost per gallon) is shown in the following table: Quantity 1 - 399 400 799 800 + Unit Price $2.00 1.70 1.62 Click here for the Excel Data File a. What order quantity is optimal? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.) Optimal order quantity ROP b. What ROP is appropriate if the acceptable risk of a stockout is 1.5 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) gallons…