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The manager at Goodstone Tires, a distributor of tires in Illinois, uses a continuous review policy to manage their inventory. The manager currently orders 1
The manager at Goodstone Tires, a distributor of tires in Illinois, uses a continuous review policy to manage their inventory. The manager currently orders tires when the inventory of tires drops to Weekly demand for tires is normally distributed with a mean of and a standard deviation of The replenishment lead time for tires is two weeks. Each tire costs Goodstone $ and the company sells each tire for $ Goodstone incurs a holding cost of percent of the purchasing cost.
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