Question: If demand was constant at 7 0 units per week with a standard deviation of five units in a leadtime of four weeks. The company

If demand was constant at 70 units per week with a standard deviation of five units in a leadtime of four weeks. The company uses a continuous review process for inventory. Ordering cost are $50 per order and holding holding cost are $2 dollars per unit per year assume 52 weeks in a year. Assume 97% service level quote (Z equals 1.88) What would be the lowest total annual cost?

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