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Best Buy's monthly demand for an Olympus Digital Camera FX 5500 is Poisson distributed with a mean of 3 cameras/month. The order quantity is
Best Buy's monthly demand for an Olympus Digital Camera FX 5500 is Poisson distributed with a mean of 3 cameras/month. The order quantity is 6 cameras, holding costs are $6.00 per camera per year, the backorder cost per outage is $12.00/unit, and the lead-time is 1 month. Determine the safety stock.
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To determine the safety stock we need to follow these steps 1 Determine the standard deviation of de...Get Instant Access to Expert-Tailored Solutions
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