Question: 1 2 . 7 Daniel s Auto Parts is a small wholesale distributor of automobile after - market items. For one particular part, an analysis
Daniels Auto Parts is a small wholesale distributor of automobile aftermarket items. For one particular part, an analysis of historical sales resulted in the distribution of daily demand shown below:
Daily Demand Probability
When a new supply of the part is ordered, the leadtime 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
Other information obtained from company records includes the following:
Order cost is $ per order.
Back order cost is $ per stockout.
Unit storage cost is $ per day.
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