Question
In using Continuous Review Policy for an inventory, it is given that the average weekly demand of iPhone7 is 44.58, the Standard deviation of weekly
In using Continuous Review Policy for an inventory, it is given that the average weekly demand of iPhone7 is 44.58, the Standard deviation of weekly demand is 32.08. The fixed ordering cost is $4,500, the Cost of one iPhone7 is $250. The Annual inventory holding cost is 18% of the product cost; Replenishment lead time is 2 weeks what would be the average inventory level? State all your assumptions carefully.
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