Question: 3b. A local store replenishes espresso makers using a (Q,R) policy with Q=400 and R=112. The average annual demand for the machine equals 1,800 units,

3b. A local store replenishes espresso makers

3b. A local store replenishes espresso makers using a (Q,R) policy with Q=400 and R=112. The average annual demand for the machine equals 1,800 units, and its lead time demand has expected value 90 and standard deviation 30. Demands that occur when the machine is out of stock are backordered, and it costs $50 per unit per year to hold in inventory. What is the imputed value of the shortage cost p ? (You can enter a number rounded to one decimal place.)

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