Question: 3 Working with the ( Q , R ) Model A local paint store uses a ( Q , R ) inventory system to control

3 Working with the (Q,R) Model
A local paint store uses a (Q,R) inventory system to control its stock levels. For a popular eggshell indoor paint, historical data shows the distribution of annual demand is approximately normal, with a mean of 468 cans and variance of 1872, expressed as N(468,1872). Replenishment lead time for this paint is about 14 weeks. Each can of paint costs the store $6. The fixed cost of replenishment is $45 per order and holding costs are based on a 20% annual interest rate
What is the holding cost h?
a. $23.60
b. $15.40
c. $1.20
d. $7.80
 3 Working with the (Q,R) Model A local paint store uses

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