Question: 1 . An optometrist orders eyeglass frames at a cost of $ 4 0 per frame and sells each frame for $ 7 0 .
An optometrist orders eyeglass frames at a cost of $ per frame and sells each frame for $ Annual holding cost is of the optometrists cost of purchasing a frame. Each time frames are ordered, a cost of $ is incurred. Because of lost goodwill, a cost of $ is incurred each time a customer wants a frame that is not in stock. Frames are delivered two weeks after an order is placed. Annual demand for frames is normally distributed with mean of and standard deviation of
a Assuming all shortages are backlogged, determine the order quantity, safety stock and reorder point.
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