Question: Peterson Enterprises uses a fixed order quantity inventory control system. The firm operates 5 0 weeks per year and has the following characteristics for an
Peterson Enterprises uses a fixed order quantity inventory control system. The firm operates weeks per year and has the following characteristics for an item:
Demand unitsyear
Ordering cost $order
Inventorycarrying cost as a percent of item value
Item Unit value $
Lead time weeks
Standard deviation in weekly demand units
What is the total order and inventoryholding cost?
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