Calculate the reorder point and the annualized cost of safety stock for the situation in which daily

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Calculate the reorder point and the annualized cost of safety stock for the situation in which daily demand is 125, the lead time is three days, the standard deviation of demand during lead time is 30, the desired service level is 95%, the opportunity cost of capital is 25%, and the item’s unit cost is $50.
Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...
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Managing Supply Chain and Operations An Integrative Approach

ISBN: 978-0132832403

1st edition

Authors: Thomas Foster, Scott E. Sampson, Cynthia Wallin, Scott W Webb

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