Question: Daily demand for a certain product is normally distributed with a mean of 500 and a standard deviation of 100. Assume sales occur 365 days

Daily demand for a certain product is normally
Daily demand for a certain product is normally
Daily demand for a certain product is normally distributed with a mean of 500 and a standard deviation of 100. Assume sales occur 365 days a year. The company uses a Q model to manage inventory. The setup cost is $25 and the cost of holding inventory is $1 per unit per year. What is the average inventory level if you want to limit the chance of a stockout to 5%? Assume a 4 day lead time. O 1976 O 466 O 328 O 1510 O 1838

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