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management at cafe Louis would like to develop an inventory ordering policy of a 90 percent probability of not stocking out. given the information below
management at cafe Louis would like to develop an inventory ordering policy of a 90 percent probability of not stocking out. given the information below , formulate an inventory management system. item cost = $10, ordering cost = $240 holding cost (%) = 33% of item cost, annual demand = 22,750, Average demand = 515 per week, Standard deviation of weekly demand = 20 per week, Lead time = 1 week, Service. probability = 90%. State the optimal order Quantity Q*. Determine the reorder point R when demand is constant, Determine the reorder point R when demand varies, determine the total inventory cost
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