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You need to choose one sultable supplier among two avaliable suppliers for a product x . Your Weekly demand for x at is normally distributed

You need to choose one sultable supplier among two avaliable suppliers for a product x. Your Weekly demand for x at is normally distributed with a mean of 100 and a standard deviation of 50. You have historically purchased a 100 per month from a local supplier who charges Ris 50 per unit. You have identified another potential source willing to supply the x at Rs 40 per unit. Before making decision, you evaluate the cost associated with the two suppliers. You are currently using continuous review policy for managing inventory and aims for a cycle service level of 95 percent. Which supplier should you go with if you have a holding cost of 20 percent? [Note FS-'(0.95)=1.64]
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\table[[,Local Supplier,Potential Supplier],[Average lead time,1 week,2 weeks],[SD in Iead time,1 week,1 week],[Minimum batch size,300,500]]

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