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4. Consider the following Inventory Modeling Problem: (20 marks, 5 marks each) An auto parts supplier sells batteries to car dealers and auto mechanics. The
4. Consider the following Inventory Modeling Problem: (20 marks, 5 marks each) An auto parts supplier sells batteries to car dealers and auto mechanics. The daily demand is approximately 250 batteries. The supplier pays $50 for each battery and estimates that the holding cost is 1% of the battery's value. It costs approximately $20 to place an order. The delivery happens 2 days after an order is placed. a. Calculate the "Holding Cost". b. Calculate Y*. c. Deduce the Lead time (L). d. Calculate TCU (Y*)
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