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Regional Supermarket is open 300 days per year. Daily usage appears normally distributed with a mean of 150 rolls and a standard deviation of 50
Regional Supermarket is open 300 days per year. Daily usage appears normally distributed with a mean of 150 rolls and a standard deviation of 50 rolls. The cost of ordering tape is $200 per order and carrying costs are $6 per roll per year. Lead time is 9 days. Using the mean daily usage, what is the EOQ, and what is the inventory holding cost? Considering the demand uncertainty, what reorder point (ROP) will provide a fill rate of 99.5%?
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