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A product with an annual demand of 1150 units has Co = $22.5 and Ch = $1 The demand exhibits some variability such that the

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A product with an annual demand of 1150 units has Co = $22.5 and Ch = $1 The demand exhibits some variability such that the leadtime demand follows a normal probability distribution with p = 29 and o' = T. a. What is the recommended order quantity? If required, round your answer to two decimal places. t Q = [:1 b. What are the reorder point and safety stock if the rm desires at most a 3% probability of stock-out on any given order cycle? If required, round your answers to the nearest whole number. new... p0... = i: 5.... s... = S c. If a manager sets the reorder point at 34, what is the probability of a stock-out on any given order cycle? If required, round your answer to four decimal places. P(Stockout,-'cycle) = D How many times would you expect a stockout during the year if this reorder point were used? Number of Orders 2 C]

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