Question: 1 2 . 7 Daniel s Auto Parts is a small wholesale distributor of automobile after - market items. For one particular part, an analysis

12.7 Daniels Auto Parts is a small wholesale distributor of automobile after-market items. For one particular part, an analysis of historical sales resulted in the distribution of daily demand shown below:
Daily Demand Probability
00.1770
10.0770
20.3850
30.2731
40.0879
When a new supply of the part is ordered, the lead-time distribution is shown below (for example, if the lead time is three, the order arrives on the third day after the order is placed):
Lead time (days) Probability
30.10
40.75
50.10
60.05
Other information obtained from company records includes the following:
Order cost is $25.00 per order.
Back order cost is $10.00 per stockout.
Unit storage cost is $0.75 per day.

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