Question: In the fixed order quantity model (under demand uncertainty), the expected monthly demand is 200, the lead time is 1 month, and demand appears normally

In the fixed order quantity model (under demand uncertainty), the expected monthly demand is 200, the lead time is 1 month, and demand appears normally distributed with a standard deviation of 200 units per month. Holding cost is $1/unit/month. The ordering cost is $25 per order.

What should be the economic (optimal) order quantity? Round to the closest integer (when applicable).

a)29

b)200

c)100

d)346

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