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The organization is open 350 days a year The cost to place orders with the supplier is $40/order; the demand averages 5 lures per day,
The organization is open 350 days a year The cost to place orders with the supplier is $40/order; the demand averages 5 lures per day, with a standard deviation of 1 lure; and the inventory holding cost is $1.00/lure/year. The lead time form the supplier is 9 days, with a standard deviation of 3 days. It is important to maintain a 95 percent cycle-service level to properly balance service with inventory holding costs. What is the total annual cost for this inventory system
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