Purchase Solution

Inventory Management in Hospital Supplies

Not what you're looking for?

Ask Custom Question

Please provide an answer to the problem below and make sure to show all the work as to how the answer was derived.
------------------------------------------------------------------------

Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was 60 (and was normally distributed). Furthermore, the standard deviation for BX-5 was 7. Ms. Flynn would like to maintain a 90% service level.

a. What safety stock level do you recommend for BX-5?
b. What is the appropriate reorder point?

Purchase this Solution
Solution Summary

Solution describes how to calculate safety stock and reorder point.

Solution Preview

Hi,

Please see response to your posting as given below.

Mean demand during lead time = 60
Standard deviation of demand = 7

Service level required = 90%
For 90% find out value Z from ...

Purchase this Solution
Free BrainMass Quizzes
Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

View More Free Quizzes
Related BrainMass Solutions

  • Inventory Management and Lean Hospitals

    593881 Inventory Management and Lean Hospitals Why is it important to manage the inventory levels? Can you list some pros and cons for holding a big inventory for the companies?

  • Operation Management: JIT Concepts

    Conclusion From the above discussion, it can be concluded that JIT is an important tool for Arnold Palmer Hospital. JIT helps it in better inventory management and also to minimize cost.

  • Hospital account for supplies- Inventory or expense

    275613 Hospital account for supplies- Inventory or expense Many agencies do not take the inventory of supplies into consideration.

  • Balance Scorecard of a Hospital

    The materials management customers were the individual units that received supplies on a daily business. They were surveyed on the responsiveness and accuracy of the supplies they received.

  • Inventory management

    166784 Inventory management: Example problem Linda Lechner is in charge of maintaining hospital supplies at General Hospital. During the past year the mean lead time demand for bandage BX-5 was 60. Furthermore, the standard deviation for BX-5 was 7.

  • Louisville Community Hospital Ratio Analysis

    (in thousands) for the Years Ended December 31, 2016 and 2017 2016 2017 Current assets Cash and cash equivalents $700 $500 Net patient receivables 4,000 3,500 Inventory 950 750 Total current assets 5,650 5,250

  • Good Guy Hospital Supply case study

    492243 Good Guy Hospital Supply case study Good Guy Hospital Supply (GGH$) was founded in the 1960s to serve the hospital and nursing home industry.

  • Supply chain operations management

    In addition to its diverse product offering, Owens & Minor helps customers control healthcare costs and improve inventory management through innovative services in supply chain management, logistics and technology.

  • Inventory tracking methods

    inventory with just-in-time (JIT) techniques.

  • Evaluations of Performance

    This will help in evaluations of Performance

View More Related Solutions