Question: Problem # 1 : The Always Fresh Grocery Store carries a particular brand of tea that has the following characteristics: Sales: 8 cases per week

Problem #1: The Always Fresh Grocery Store carries a particular brand of tea that has the following characteristics:
Sales: 8 cases per week
Ordering cost: $10 per order
Carrying charge: 20% annually
Item cost: $80 per case
At what inventory level will tea be ordered assuming safety stock is set at 12 cases and the lead time is 2 weeks?

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