Question: Lead time demand: Bearflag inc. wants to determine the size of the beartrap orders. It observes a weekly demand of 110 beartraps with a standard
Lead time demand: Bearflag inc. wants to determine the size of the beartrap orders. It observes a weekly demand of 110 beartraps with a standard deviation of 20 beartraps. The cost of placing an order is $2000 per unit, and the time from ordering to receipt is 4 weeks. The procurement cost (wholesale price) of a beartrap is $400 per unit. The annual inventory carrying cost is 10% of the procurement cost of the beartrap. What is the expected demand during the lead time for the beartrap? Assume the business is open for 49 weeks in a year (Do not round your intermediate calculations)
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