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The KAB Corporation's daily demand for item XYZ is normally distributed with a mean of 50 and a standard deviation of 4.The replenishment lead-time is

The KAB Corporation's daily demand for item XYZ is normally distributed with a mean of 50 and a standard deviation of 4.The replenishment lead-time is a constant 10 days.The cost of placing an order is $40 and the unit holding cost per year is $3.KAB operates 365 days per year. Suppose the management uses an order quantity of 1,000 units.Compute the optimal order quantity. What is the reorder point if an average of one stockout every 300 days is desired?

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