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A supplier sells a popular auto part to car dealers. The weekly demand is approximately normal with the historical distribution of D~N ( 6 3

A supplier sells a popular auto part to car dealers. The weekly demand is approximately normal with the historical distribution of D~N(63,25) units over a 45-week operating year. The supplier pays $26 for each unit and sells each for $41. In addition, they estimate that the annual holding cost is 30 percent of the unit's cost (to the supplier). It costs approximately $25 to place an order (managerial and clerical costs). Assume a four-week lead time.Suppose the order costs are expected to increase and the supplier now wishes to order 270 units at a time (instead of the EOQ derived in question 11). What is the unit ratio, \gamma ?
a.
3
b.
4
c.
2
d.
1

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