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A shop able to sell over 3 0 0 0 units of a particular product on an average yearly. However, the demand of this product
A shop able to sell over units of a particular product on an average yearly. However, the demand of this product is uncertain and thus during the lead time the demand is assumed to be normally distributed with mean of units and a standard deviation of units. Ordering cost is OMR per order, and the holding cost is percent of selling price of the item with OMR per unit. If the shop is willing to accept percent stockouts in a year, then what should be the reorder level? Round to decimal places Answer:
A shop able to sell over units of a particular product on an average yearly. However, the demand of this product is uncertain and thus during the lead time the demand is assumed to be normally distributed with mean of units and a standard deviation of units. Ordering cost is OMR per order, and the holding cost is percent of selling price of the item with OMR per unit. If the shop is willing to accept percent stockouts in a year, then what should be the reorder level? Round to decimal places
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