Question: and transformers, all using a certain type of copper wire. The firm's demand for this wire is approximately normal, averaging 2 0 spools per week,
and transformers, all using a certain type of copper wire. The firm's demand for this wire is approximately normal, averaging spools per week, with a standard deviation of spools per week. Cost per spool is $; ordering costs are $ per order; inventory handling cost is $ per spool per year. Acqusition lead time is four weeks. The company works day weeks per year. points
a What is the optimal size of an order, if minimization of inventory system cost is the objective?
b What are the safety stock and reorder point if the desired service level is
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