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In a T-shirt factory, there is an inventory holding cost of $ 1.50 per piece per day, a late sale cost of $ 3.00 per
In a T-shirt factory, there is an inventory holding cost of $ 1.50 per piece per day, a late sale cost of $ 3.00 per garment per day and an ordering cost of $ 500.00 There is a delivery time of 14 days per order and the exact demand during this time is not known, but it is known to be a random variable based on a normal distribution with a mean of 600 garments and a standard deviation of 60. Determine the order size, reorder point and safety stock so that there is no shortage during 95% of the delivery time.
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