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Business, 17.04.2020 20:59 kandrews6221

An item has a fix cost of replenishment of $1000. The per-unit wholesale price of the item is $50. The annual holding cost is estimated based on a 20% interest rate. The daily demand is normally distributed with a mean of 200 units and a standard deviation of 10 units. The lead time from the supplier is normally distributed with a mean of 10 days and standard deviation of 2 days. A service level of 97.5% is desired. Determine a good (Q, r) policy for this item using your knowledge on (Q, r) models.

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An item has a fix cost of replenishment of $1000. The per-unit wholesale price of the item is $50. T...
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