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Suppose the supply manager wants to use the order quantity calculated in part a), and also wants to guarantee that 98% of the time they have enough needles to serve the patients who arrive. Calculate the optimal base-stock level as an approximation for the reorder point r that the office should use to achieve this...
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Calculate the optimal base-stock level as an approximation for the reorder point r that the office should use to achieve this. What is the reorder point r? (Round up to the nearest needle.) Base your remaining answers on your answer to part c). Suppose that the office currently has 20 needles in stock, and they placed their most recent order 3 days ago...
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