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Inventory Management Model: Singl-Period Model The local supermarket buys lettuce each day to ensure really fresh produce. Each morning, any lettuce that is left from
Inventory Management Model: Singl-Period Model The local supermarket buys lettuce each day to ensure really fresh produce. Each morning, any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals. This week, the supermarket can buy fresh lettuce for $5.00 a box. The lettuce is sold for $15.00 a box and the dealer that sells old lettuce is willing to pay $1.60 a box. Past history says that tomorrow's demand for lettuce averages 240 boxes with a standard deviation of 36 boxes. How many boxes of lettuce should the supermarket purchase tomorrow Excel's NORM.S.INV() function to find the z value. Round your answer to the (Use nearest whole number. Enter the numbers only) Inventory Management Model: Multi-period Model- Fixed Order Quantity Model (Q Model) Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 1,500 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $5 per unit of average inventory. Every time an order is placed for more of item X, it costs $6. a. Whenever item X is ordered, what should the order size bi ? (Round your answer to the nearest whole number. Enter the numbers only)
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