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Suppose that the retailer has identified a potential supplier from overseas who would be able to supply the item at a unit cost of $
Suppose that the retailer has identified a potential supplier from overseas who would be able to supply the item at a unit cost of $ and a constant delivery lead time of weeks. The retailer would incur an order cost of $ per order.Characterize the optimal inventory policy for this item ie answer both questions of how much to order and when to order if this overseas supplier were to be used.What would the average annual ordering and inventory holding costs implied by the policy you identified in part c be for this item?
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