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The optimal order quantity Q' of certain canned product is 187 cans/order with the ordering cycle time of T*= 40 days at the minimum annual
The optimal order quantity Q' of certain canned product is 187 cans/order with the ordering cycle time of T*= 40 days at the minimum annual total cost TC(Q*) = $65.48/year. Answer the following questions: (a) If the lead time to procure the product from an east Asian country is about 60 days, what is the reorder level when the automated ordering system will trigger to place an order? (b) If the product is sold in a store-keeping unit (SKU) of a box containing 50 cans, how many boxes should the manager buy to minimize the annual cost
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