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Suppose Eddie Bauer does move production of wholesale bags to Turkey. Let's say it can place orders with its Turkish supplier every four weeks; that

Suppose Eddie Bauer does move production of wholesale bags to Turkey. Let's say it can place orders with its Turkish supplier every four weeks; that is, one period equals four weeks. Its lead time is two periods; that is, L =2. The average demand for one type of wholesale bag is 200 bags per period (i.e., they sell, on average, 200 bags every four weeks), with a standard deviation of 100 bags. The holding cost for each bag each period is $1.00, and it would operate with a 2.5 safety factor. How much inventory on average, would it have on order and on hand? What would be the inventory holding cost per bag?

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