Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
A company sells 5,000 units of a product annually. The ordering cost is $100 per order, and the holding cost is $2 per unit per
A company sells 5,000 units of a product annually. The ordering cost is $100 per order, and the holding cost is $2 per unit per year. The company orders 700 units at a time. The demand is Normally distributed with a mean of 14 per day and standard deviation 2 over the lead time which is 6 days. If the company wants to maintain 95% service level what is the total cost of inventory in Q system? Round your answer to the nearest whole number
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/668aafc98ca1e_001668aafc92fc92.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started