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Demand is distributed normally with a mean of 75 containers per week and a standard deviation of 8 containers per week. The cost per container
Demand is distributed normally with a mean of 75 containers per week and a standard deviation of 8 containers per week. The cost per container (including delivery fee) is $100,000. Your company wants to CSL of 95%. The annual inventory holding rate is 15%. In inbound transportation, you have two choices: Carrier 1: Lead Time is 1.5 weeks; Carrier 2: Lead Time is 0.5 weeks.What is the annual pipeline inventory holding cost if you choose Carrier 1 instead
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