Question: Demand for widgets is normally distributed with a daily average of 3 0 units, standard deviation of 4 units. Lead time from the supplier is

Demand for widgets is normally distributed with a daily average of 30 units, standard deviation of 4 units. Lead time from the supplier is 3 days. Order costs are $50 per order. Holding cost is $1 per unit per year.
a.) What is the optimal order size?
b.) What ROP should be used to maintain a 98% service level?
c.) What would the total cost of the system you calculated in parts a. and b. be?
d.) When would a fixed period system be preferable to a fixed quantity system?
 Demand for widgets is normally distributed with a daily average of

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