Five items in a retail inventory make up the bulk of the items maintained. The inventory levels are controlled using the reorder point method. They have a fixed lead time of 15 days, a purchase order cost of $35 per order per item, and a daily inventory carrying cost of 0.08219 percent. Other information about the items is as follows:

An in-stock probability during lead time is targeted at 95 percent. The forecast errors are normally distributed.

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A B C D E Daily demand forecast (d), cases 15 30 50 20 60 Forecast error (), cases Item value (C), dollar/case 36 45 24 13 16