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The Mediterranean Restaurant stocks a red Chilean table wine it purchases from a wine merchant in a nearby city. The daily demand for the wine

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The Mediterranean Restaurant stocks a red Chilean table wine it purchases from a wine merchant in a nearby city. The daily demand for the wine at the restaurant is normally distributed, with a mean of 18 bottles and a standard deviation of 4 bottles. The wine merchant sends a representative to check the restaurant's wine cellar every 30 days, and during a recent visit there were 25 bottles in stock. The lead time to receive an order is two days. The restaurant manager has requested an order size that will enable him t limit the probability of a stockout to 5%. The annual demand is about 5400 given that the restaurant is open about 300 days a year. The cost of a bottle is about $10, and it costs them about $50 to place an order. It costs them about $5 to hold a bottle in inventory for a year/ On the most recent visit with 25 bottles in stock, what should be the order size? 304400556589 None of the above

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