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An electronics store offers a range of video games and currently features a new game that costs $420. This particular game has a brief shelf

An electronics store offers a range of video games and currently features a new game that costs $420. This particular game has a brief shelf life and can be classified as perishable. It comes with high annual inventory holding cost rate of 25% of its SKU value. The estimated ordering cost is $90 per order. The store is anticipating an annual demand of 1,000 units for the upcoming year. The daily demand is normally distributed with a standard deviation of 6 units. The desired service level for this game is 95%. The lead time for orders is five weeks, assuming 52 weeks in a year 


a) Set up a fixed-order-quantity system computing: the EOQ, reorder point with safety stock, and total cost. 


b) Setup a fixed-period system computing: the review period (T) and the replenishment level (M) with safety stock. Round the review period to the next highest number. 


c) How much more does it cost to hold inventory in a FPS vs. a FQS with a safety stock

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