Question: Consider an economic order quantity case where annual demand = 1000 units, EOQ, Q = 200 units, the desired probability of not stocking out P

  • Consider an economic order quantity case where annual demand = 1000 units, EOQ, Q = 200 units, the desired probability of not stocking out P = 0.95, the standard deviation of demand during lead time = 25 units, and lead time L = 15 days. Determine the reorder point, Assume that demand is over a 250 workday year.

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