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mean of 2 0 0 units and a standard deviation of 5 0 units. At the beginning of each month, Galaxy orders enough goggles from
mean of units and a standard deviation of units. At the beginning of each month, Galaxy orders enough goggles from its supplier to bring the inventory level up to goggles. If the monthly demand is less than Galaxy pays $ per pair of goggles that remains in inventory at the end of the month. If the monthly demand exceeds Galaxy sells only the pairs of goggles in stock. Galaxy assigns a shortage cost of $ for each unit of demand that is unsatisfied to represent a lossofgoodwill among its customers. Management would like to use a simulation model to analyze this situation.
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