BIOSTATISTIC QUESTION

Question

Mr. Ibrahim is responsible for maintaining clean linen for the hospital. The hospital has a contract with a laundry company to clean all dirty linen. He has been informed that the hospital is doing some renovations and he needs to move his clean-linen storage to another smaller storage room until the renovations are finished. As you know, the demand of clean linen is fluctuating from week to week and he used to overstock the storage room to accommodate that demand. Now, he is concerned with the number of clean linen that he should stock in that smaller room with limited space.

Luckily, Mr. Ibrahim has some data about the number of stock/ demand in the past year. When analyzing that data, he found that the average number of linen used per week is 57, with a SD of 9. He wants to be prepared for 99% of all demand levels. So, what is the minimum weekly stock he should keep so he can be prepared at a level of 99% of all demands.? (show calculations)

Answer 1

Assuming a standard distribution of the average number of linen used per week, 99% of all average linens per week will fall within 3 standard deviations (3*9=27 linen) of the average. So he'll have to be ready for between 30 and 84 linen per week.