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Weekly demand for Zim-K's in a given store follows a normal distribution with a mean of 40 units and a standard deviation of 8 units.
Weekly demand for Zim-K's in a given store follows a normal distribution with a mean of 40 units and a standard deviation of 8 units. It costs Hi-Tek $500 to purchase each unit and the annual holding cost is estimated to be 20% of the unit purchase cost. The unit order cost is $900 and the lead time is one week. Assume 50 weeks in a year. [2 points] If each store has the same demand distribution, operates independently, applies the EOQ policy and aims for a 98% service level, determine the annual inventory cost (ordering + holding) for all four Hi-Tek stores. [2 points] Hi-Tek is now considering centralizing the replenishment of Zim-K's for their four stores. It would regularly place a large order with its Zimple supplier that would cover the four stores' consolidated demands for Zim-K's. The order would be
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