Question: 1 - F ( R ) = Q h p , R 0 = * * z + , n * * = * *
Chester is a printing company, which sells printers and cartridges to offices. The cost of one cartridge is $ and requires months of lead time to be in stock. The company expects to sell cartridges during the lead time but there is a deviation from threemonth period to the next, which is units of cartridge. The interest rate is calculated as per cent annually for holding costs. Total cost for one order is $ The shortage penalty is estimated at $ per unit. Assuming that the demand is distributed as normal, find the optimal values.
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