Homework SourseProblem 2026 University Drug Pharmaceuticals orders its anti
Problem 20-26
University Drug Pharmaceuticals orders its antibiotics every two weeks (14 days) when a salesperson visits from one of the pharmaceutical companies. Tetracycline is one of its most prescribed antibiotics, with average daily demand of 1,700 capsules. The standard deviation of daily demand was derived from examining prescriptions filled over the past three months and was found to be 750 capsules. It takes five days for the order to arrive. University Drug would like to satisfy 98 percent of the prescriptions. The salesperson just arrived, and there are currently 25,200 capsules in stock.
How many capsules should be ordered? (Use Excel\'s NORMSINV() function to find the correct critical value for the given -level. Do not round intermediate calculations. Round \"z\" value to 2 decimal places and final answer to the nearest whole number.)
| University Drug Pharmaceuticals orders its antibiotics every two weeks (14 days) when a salesperson visits from one of the pharmaceutical companies. Tetracycline is one of its most prescribed antibiotics, with average daily demand of 1,700 capsules. The standard deviation of daily demand was derived from examining prescriptions filled over the past three months and was found to be 750 capsules. It takes five days for the order to arrive. University Drug would like to satisfy 98 percent of the prescriptions. The salesperson just arrived, and there are currently 25,200 capsules in stock. |
Solution
