A hospital's biomedical repair shop uses a 4-week periodic system to maintain the inventory on the blood pressure cuff repair parts.They use an average 40 adult arm cuffs with a standard deviation of 6 cuffs every 4 weeks.Cuffs aren't the most critical item they carry,but the manager would like to avoid the embarrassment of a stockout at least 95% of the time.What should their restocking level be?

Question

Quizplus · Accepted Answer

To avoid a stockout 95% of the time, we need to calculate the restocking level using the z-score for 95% confidence, which is approximately 1.65. The restocking level is calculated as the average demand plus the z-score times the standard deviation: 40 + (1.65 * 6) = 49.9, which rounds to 50 cuffs.

A Hospital's Biomedical Repair Shop Uses a 4-Week Periodic System