Question: Consider an item with A = $ 2 5 ; D = 4 , 0 0 0 units / year; v = $ 8 /

Consider an item with A = $25; D =4,000 units/year; v = $8/ unit; L =1 month; \sigma L =100 units; TBS =6 months; and r =0.16 $/$/year. a. Compute the reorder quantity of the ( s , Q ) policy using the EOQ.

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