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A company has average demand of 3 0 units per day. Lead time from the supplier averages seven days. Assume that the combined standard deviation
A company has average demand of units per day. Lead time from the supplier averages seven days. Assume that the combined standard deviation of demand during lead time has been calculated and is equal to units. One unit costs $ and the inventory carrying cost is percent.
standard deviation covers
standard deviations covers
standard deviations covers
standard deviations covers
standard deviations covers
standard deviations covers
standard deviations covers
standard deviations covers
standard deviations covers
Suppose management decides it wants to offer a percent service level. That is it is willing to experience a stockout probability of percent during the order cycle. What is the annual carrying cost of this safety stock policy?
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