Question: Problem 4 (Use two digits after decimal point) Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a

Problem 4 (Use two digits after decimal point) Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas fastest-moving inventory item has a demand of 9,520 units per year. The cost of each unit is $84 and the inventory carrying cost is $26 per unit per year. The average ordering cost is $78 per order. It takes about 5 days for an order to arrive. The standard deviation of daily demand is 3 and the firm operates 340 days per year. Q5. Compute the EOQ and annual inventory cost including the purchase cost. Q6. a.. What is the reorder point if the firm wants to satisfy a 98 percent probability of not stocking out during the lead time? b. What is the safety stock

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