The cost of Evoo is $100 per case, which includes several bottles. The lead time for receiving
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The cost of Evoo is $100 per case, which includes several bottles. The lead time for receiving an order is 2 weeks, and Aceituna Paradise does not take ownership of the product until it arrives at the restaurant. The demand of Evoo at the restaurant is normally distributed with a mean of 6400 cases per year and a standard deviation of 1515 cases per year. There is an annual holding rate of 10%. Finally, Aceituna Paradise has set a k=1.34 for the inventory policy. Using the inventory policy mentioned, answer the following questions. Assume 50 weeks per year for all calculations. What is the order-up-to-point (S)?
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