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Weiss paint store stocks a particularly popular white latex paint, whose monthly demand is approximately normal with mean 28 and standard deviation of 8. Replenishment

"Weiss paint store stocks a particularly popular white latex paint, whose monthly demand is approximately normal with mean 28 and standard deviation of 8. Replenishment lead time is about 14 weeks. Each can of paint costs the store $6. Although excess demands are backordered, the store owner estimates that unfilled demands cost about $10 each in bookkeeping and loss-of-goodwill costs. Fixed costs of replenishment are $15 per order, and holding costs are based on a 30% annual rate of interest. Assume that there are 4.33 weeks per month. (a) Suppose that the white paint is reordered on a monthly basis based on the inventory counts at the end of each month. Using the (Q, R) solution, determine the appropriate values of the (s, S) inventory control policy. (b) Suppose that the demands during the months of January to June were, " Month Demand End of Month Inventory Order December 26 January 37 February 33 March 26 April 31 May 14 June 40 "If the starting inventory in January was 26 cans of paint, determine the number of units of paint ordered in each of the months January to June, following the (s, S) policy you found above."

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