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LuxeLife store resells luxury items, the demand for which is normally distributed. The inventory related information at the LuxeLife store is as follows: Average Annual
LuxeLife store resells luxury items, the demand for which is normally distributed. The inventory related information at the LuxeLife store is as follows:
Average Annual Demand luxury items
Standard deviation of weekly demand items
Item Cost $ per item
Ordering cost $ per order
Lead time weeks
Annual inventoryholding cost estimate of the item cost
Required service level
LuxeLife works weeks a year.
Note: The approximate z values are: for for for for
Suppose the store management practices the fixedQUANTITY ordering system with the use of the economic order quantity. Answer the following questions:
i How many luxury items they order each time?
ii When do they place an order?
iii What is the safety stock?
Select one:
a
i they order luxury items
ii an order is placed when the inventory in stock reaches about items
iii the safety stock is items
b
i they order luxury items
ii an order is placed every weeks
iii the safety stock is items
c
i they order luxury items
ii an order is placed every weeks
iii the safety stock is items
d
i they order luxury items
ii an order is placed every weeks
iii the safety stock is items
e
i they order luxury items
ii an order is placed when the inventory in stock reaches about items
iii the safety stock is items
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