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You are in change of inventory for a manufacturing company, and you are given the following information: Table 3: Inventory Characteristics Average Annual Demand 7800

You are in change of inventory for a manufacturing company, and you are given the following information:

Table 3: Inventory Characteristics

Average Annual Demand

7800

Standard Deviation for Annual Demand

2600

Leadtime

2 weeks

Holding or Carrying Cost

15% per year

Fixed Delivery Cost per Shipment

$200

Price (value) per Item

$80

Stockout cost per Item

$20

Probability of being in stock during leadtime

85%

5 What is your optimal economic order quantity (integer)?

6 What is the reorder point? (Convert d to weeks.)

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