4 A firm experiences demand with a mean of 100 units per day. Lead time demand is...
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4 A firm experiences demand with a mean of 100 units per day. Lead time demand is normally distributed, with a mean of 1,000 units and a standard deviation of 200 units. It costs
$6 to hold one unit for one year. If the firm wants to meet 90% of all demand on time, what will be the annual cost of holding safety stock? (Assume that each order costs $50.)
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Operations Research Applications And Algorithms
ISBN: 9780534380588
4th Edition
Authors: Wayne L. Winston
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