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The annual demand for a product is 1 4 , 2 0 0 units. The weekly demand is 2 7 3 units with a standard
The annual demand for a product is units. The weekly demand is units with a standard deviation of units. The cost to place an order is $ and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $ per unit.
Find the reorder point necessary to provide a percent service probability.
Note: Use Excel's NORM.SINV function to find the z value. Round z value to decimal places.
Suppose the production manager is asked to reduce the safety stock of this item by percent. If she does so what will the new service probability be
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