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Problem 1 : ( 1 0 Points ) A company decides to establish an EOQ for an item. The annual demand is 2 0 0
Problem : Points
A company decides to establish an EOQ for an item. The annual demand is units. The
ordering costs are $ per order, and inventorycarrying costs are $ per unit per year.
Calculate the following:
a The EOQ in units.
b Number of orders per year.
c Annual ordering cost, annual holding cost, and annual total cost
Problem : Points
Given this information:
Expected demand during lead time units
Standard deviation of lead time demand units
Assuming that lead time demand is distributed normally. The risk of stockout is percent during
lead time.
a What amount of safety stock is appropriate?
b Calculate ROP
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