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You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 252 days a year and
You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 252 days a year and has the following characteristics for its primary item: Demand = 25,000 units/year = Ordering cost = $24/order = Holding cost = $4/unit/year Lead time = 4 days Standard deviation in daily demand = 7 units = What is the optimal (expected) number of orders (N) per year (to the nearest whole number)
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