Question: A company operates 50 weeks per year. The average demand during a week is 50 units with a standard deviation of 5 units. The lead

A company operates 50 weeks per year. The average demand during a week is 50 units with a standard deviation of 5 units. The lead time is constant at 9 weeks. The holding cost is $50 per unit, and the ordering cost is $100 per order. Use a continuous review system with the cycle service level of 90 % to answer the following:

What is the annual demand?
What is the economic order quantity?
What is the standard deviation of demand during lead time?
What is the safety stock?
What is the reorder point?
What is the total annual cost of inventory?

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