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Your company buys earbuds from a regional supplier at a unit cost of $10. Every time that you place an order with you supplier you
Your company buys earbuds from a regional supplier at a unit cost of $10. Every time that you place an order with you supplier you incur a fixed cost of $100. Your inventory holding cost is 52% per unit per year. You face a customer demand that follows a normal distribution of N(5, 2) per week, a delivery lead time of 4 weeks and a 98% service level (zSL=98%=2)
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