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Weekly demand for electric motors at a motor manufacturer is normally distributed, with a mean of 1,000 and a standard deviation of 900. Motors are

Weekly demand for electric motors at a motor manufacturer is normally distributed, with a mean of 1,000 and a standard deviation of 900. Motors are currently assembled and delivered in China at a cost of $20,000 per motor. The supplier takes six weeks to supply an order. A local supplier has offered to deliver motors with a lead time of one week at a cost of $20,400 per motor. The motor manufacturer is targeting a CSL of 95 percent and monitors its inventory continuously. The manufacturer incurs an annual holding cost of 25 percent. Should the manufacturer accept the local suppliers offer?

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