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Palins Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to manage
Palins Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to manage inventory of this standard muffler. Use the information in the following table to determine the optimal inventory target level (or order-up-to level). Annual demand 5,400 mufflers Ordering cost $ 75 per order Standard deviation of daily demand 6 mufflers per working day Service probability 93 % Item cost $ 35.00 per muffler Lead time
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