Question: PARAMETER VALUE Item cost $ 1 1 . 0 0 Order cost $ 2 5 7 . 0 0 per order Annual holding cost 3

PARAMETER VALUE
Item cost $11.00
Order cost $257.00 per order
Annual holding cost 32% of item cost
Annual demand 26,900 units
Average weekly demand 538 per week
Standard deviation of weekly demand 30 units
Lead time 1 week
Service probability 90%
Determine the order quantity and reorder point.

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