The daily demand of surgical instruments in a hospital is normally distributed. The hospital wants to know how much stock it should maintain and when to place an order. Congratulation, you are given an opportunity to get selected as an inventory management specialist, help the hospital to find safety stock and reorder point using the following data: Average daily demand Standard deviation of daily demand Average lead time (in days) = 16 units 4 units = 16 days Standard deviation of lead time, OLT = Service level (% of demand met) = 4 days 95.00% (A) 116.74 367.26 (B) 108.51 364.51 (C) 122.34 374.34 (D) 116.82 376.4 You work in a manufacturing organization. Consider an equipment that is available for production for 18 hours per day. On a regular day, 350 items are processed through this equipment, each of which takes around 2.5 minutes on it. Total time required for setting up the equipment is 1.5 minute, 1 minute is required to obtain the final product. Out of the items that are processed through the equipment, 20% requires rework and needs to undergo the set-up and processing time once again. In rest of the time, the equipment remains idle. What is the total waste time in minutes? (A) 30 (B) 175 (C) 630 (D) 205 The mean demand of surgical units is 300 units per month, the monthly standard deviation is 20 units, find the minimum and maximum demand for 90% service level. (A) The data about production level is necessary to give this answer, (B) 257 and 343 (C) 247 and 353 (D) 267 and 333