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Daily demand for a certain product is normally distributed with a mean of 1 0 0 and a standard deviation of 1 5 . The
Daily demand for a certain product is normally distributed with a mean of and a standard deviation of The supplier is reliable and maintains a constant lead time of days. The cost of placing an order is $ and the cost of holding inventory is $ per unit per year. There are no stockout costs, and unfilled orders are filled as soon as the order arrives. Assume sales occur over days of the year.
Your goal here is to find the order quantity and reorder point to satisfy a percent probability of not stocking out during the lead time.
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