Question: 23-The average demand for an item is 34 units a day in a retail store. The unit cost of the item is $28. It costs
23-The average demand for an item is 34 units a day in a retail store. The unit cost of the item is $28. It costs $38 to place an. Order with its supplier, and the inventory carrying cost per unit per year is 6% of the unit cost in the store. The store opens 290 days a year. The store manager wishes to avoid the stock-out of this item with a probability of 95% and this requires carrying a safety stock of 58 units of the item in the store. What is the average inventory amount for this item in the store when total inventory cost is minimized?
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