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out; sells ditterent models or bicycles and bicycle parts. lne sourcing of a popular model, STiger is one focus in SEC's business planning because this

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out; sells ditterent models or bicycles and bicycle parts. lne sourcing of a popular model, STiger is one focus in SEC's business planning because this model has brought significant revenue to the company in recent years. SEC orders all models from a manufacturer in India and the deliyery time is 1 month [i.e. lead time or reoreder period}. Each time an order is placed, it iccurs a cost of $135 [administrative cost for ordering} and the purchase price paid by SEC is $400 per S-Tiger bicycle. SEC holds inventory and the holding cost is about $0.2 a week per bicycle. To manage the inventory at the distribution center, the manager, Frank collected the data of weekly orders from the retail stores for past 5 years (see the table below, 1 year = 52 weeks and EEG weekly orders in total} and plotted the histogram showing the distribution of such weekly demands

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