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Problem $11-15($Static$)$

Given the following information, formulate an inventory management system. The item is demanded $50$ weeks a year.

PARAMETER VALUE

Item cost $$10\mathrm{.}00$

Order cost $$250\mathrm{.}00$ per order

Annual holding cost $33\%$ of item cost

Annual demand $25,750$ units

Average weekly demand $515$ per week

Standard deviation of weekly demand $25$ units

Lead time $1$ week

Service probability $95\%$