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A company begins a review of ordering policies for its continuous review system by checking the current policies for a sample of SKUs. Following are
A company begins a review of ordering policies for its continuous review system by checking the current policies for a sample of SKUs. Following are the characteristics of one item. Use a standard normal table for z-values. Demand (D) = 100 units/week (Assume 52 weeks per year) Ordering and setup cost (S) = $75/order Holding cost (H) = $13.25/unit/year Lead time (L) = 4 weeks Standard deviation of weekly demand = 19 units Cycle-service level = 90 percent What is the annual holding cost? (Enter your response rounded to one decimal place.)
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