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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 The average demand for one type of wholesale bag is bags per period ie they sell, on average, bags every four weeks with a standard deviation of bags. The holding cost for each bag each period is $ and it would operate with a 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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