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Consider you are warehouse manager for a home construction company and supplier for floor tiles has recently changed ordering cost and lead time for floor
Consider you are warehouse manager for a home construction company and supplier for floor tiles has recently changed ordering cost and lead time for floor tiles. You need to update your reorder level for floor tiles in system due to these changes so that you can maintain your current service level. Calculate what should be new reorder level based on following information:
tableFloor tiles average weekly demand, TilesStandard Deviation of weekly demand, TilesNew Ordering cost,$
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