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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 =$17/ order Holding cost =$2/ unit / year Lead time =4 days Standard deviation in daily demand =4 units What is the optimal (expected) number of orders (N) per year (to the nearest whole number)
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