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GeoTrack scooter needs, on average, 3 , 0 0 0 tons of aluminum each week, with a standard deviation of 1 2 0 0 tons.

GeoTrack scooter needs, on average, 3,000 tons of aluminum each week, with a standard deviation of 1200 tons. The lead time to receive its orders is 10 weeks. The holding cost for one ton of aluminum for one week is $12. It operates with a 0.99 in-stock probability. Use Table 11.5. If its average inventory was 12,000 tons, what would be its average holding cost per ton of aluminum?

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