An item is stored in 8 warehouses with an understocking cost of $0.49 and an overstocking cost
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Question:
An item is stored in 8 warehouses with an understocking cost of $0.49 and an overstocking cost of $0.02. The demand per warehouse is normally distributed with an average bi-weekly demand of 54.2 and standard deviation of 21.4. The item is reviewed every two weeks and the order lead time is one week. What is the required safety stock per warehouse? Round your answer to the nearest integer.
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