Question

The medical staff on Shudder Island uses an average of 60 vials of Thorazine every day. This demand is normally distributed with a standard deviation of 15 vials. Since this is an important item, they have decided on a 98% ( Z for 98%=2.05 ) service level. Ferries run infrequently, so the lead time for delivery is 12 days on an average with a standard deviation of 2 days. Lead time is also normally distributed. (To receive full credit, please write the formulae, and please show all the calculations \& the computational steps). a. What is the expected demand during lead time

Answer 1

The expected demand during lead time is the average daily demand multiplied by the number of days in the lead time. In this case, the expected demand during lead time is 720 vials.

Step-by-step explanation:

To find the expected demand during lead time, we need to multiply the average daily demand (60 vials) by the lead time (12 days). This is because the expected demand during lead time is simply the average daily demand multiplied by the number of days in the lead time.

So, the formula to calculate the expected demand during lead time is:

Expected demand during lead time = Average daily demand * Lead time

Using the given information, the expected demand during lead time would be:

Expected demand during lead time = 60 vials * 12 days = 720 vials