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The diagram below shows a simplified inventory profile for the inventory of bundles of paper at a copy shop (based on averages) over the past
The diagram below shows a simplified inventory profile for the inventory of bundles of paper at a copy shop (based on averages) over the past 15 days. Assume a continuous review (0) system. Further assume that each grid line on the horizontal axis represents one day, the lead time for replenishment is two days, the fixed cost to place an order is $15, each package of paper costs the shop $6.00, and the inventory holding rate is 20% per year: Inventory 800 700 600 500 400 300 200 100 Time (Days) a). (1 pt) What is the order quantity (Q) being used, in the diagram? b). (1 pt) Approximately what is the reorder point (P), in the diagram? c). (1 pt) What is the safety stock, in the diagram? d). (1 pt) What is annual demand? (Assume that demand occurs 365 days per year.) e). (1 pt) What is the average amount of cycle stoc , in the diagram
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