Question: Consider a product that has a daily demand given by, d~N(50,15). The Lead time is also uncertain, L~(9,3). If the retailer wants to maintain a

Consider a product that has a daily demand given by, d~N(50,15). The Lead time is also uncertain, L~(9,3). If the retailer wants to maintain a service policy of 98% what should be its reorder point and safety stock (round your answer to the nearest integer)? If holding cost is $1.5 per unit, what is the additional cost incurred due to safety stock?

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