Question: It is estimated that the weekly demand for a popular product at Joe's Scuba Diving shop is 89 units on average, and it (i.e., the
It is estimated that the weekly demand for a popular product at Joe's Scuba Diving shop is 89 units on average, and it (i.e., the weekly demand) has a standard deviation of 36 units. The shop is open 52 weeks a year. The shop places a replenishment order whenever the inventory reduces to a certain re-order point. The cost to place an order is $29 per order, with a order lead-time of 3 weeks. The annual inventory holding cost is $17 per unit. Suppose that the optimal order quantity is used and a service level of 95% is maintained by the shop. What is the total annual inventory holding cost? Note: Only round your final answer to the nearest integer Do not include the unit of measurement in your answer. For instance, if the answer is 15 units only enter 15
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