Question: Questions 5 through 13 are based on the following information: A small manufacturing company uses continuous review system for a given product: The average demand

Questions 5 through 13 are based on the following
Questions 5 through 13 are based on the following information: A small manufacturing company uses continuous review system for a given product: The average demand for the product is 125 units a day and the unit price is $5. It costs $25 to process each order and there is a seven-day lead-time. The holding cost is 12.5% of the price of the product per year. Company operates 200 days per year. You have been given that the appropriate EOQ is 1415. Suppose that things have become uncertain and that customer demand is no more constant. Customer demand is now normally distributed with mean being the same as above and standard deviation = 50 units per day. The supply source is still very reliable and as a result the lead time is constant. Find out the safety stock needed to achieve 90% customer service level (roundup your answer). 171 177 183 None of the above

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