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b . Quantitatively assist management in the decision. ( Assume that t = 1 1 1 2 and 4 = 1 0 0 units where

b. Quantitatively assist management in the decision. (Assume that t=1112 and 4=
100 units where 4 is the standard deviation of forecast errors over the current lead
time of 4 weeks. Also assume that forecast errors are normally distributed and that the
annual carrying charge is 20%.)
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