Question: Consider a retailer using a continuous review inventory policy. The daily demand is normally distributed with a mean of 5 0 and standard deviation of

Consider a retailer using a continuous review inventory policy. The daily demand is normally distributed with a mean of 50 and standard deviation of 15. The retailer operates 360 days in a year. The holding cost per unit per year, i.e. h is $1.8 and the ordering cost per order is $140. The shipment lead time is 9 days. What is the EOQ for the inventory item?

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