A supplier sells a popular auto part to car dealers. The weekly demand is approximately normal with
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Question:
A supplier sells a popular auto part to car dealers. The weekly demand is approximately normal with the historical distribution of D~N units over a week operating year. The supplier pays $ for each unit and sells each for $ In addition, they estimate that the annual holding cost is percent of the unit's cost to the supplier It costs approximately $ to place an order managerial and clerical costs Assume a fourweek lead time.Using your answer to the above question, what is the cost coefficient ratio effect on cost of ordering gamma Q units instead of Q units?
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