Question: Suppose a grocery store uses a P system for its inventory of apples, ordering once per week. Demand for apples averages 4 0 cases per
Suppose a grocery store uses a P system for its inventory of apples, ordering once per week. Demand for apples averages cases per week, with a standard deviation of cases per week. Holding costs for the apples are $ per case per year. The costs of each order are $ The company carries cases in safety stock to absorb uncertainty in demand. The company operates weeks per year.
What are the expected annual holding costs? Pick the closest answer.
Scenario
Suppose a grocery store uses a P system for its inventory of apples, ordering once per week. Demand for apples averages cases per week, with a standard deviation of cases per week. Holding costs for the apples are $ per case per year. The costs of each order are $ The company carries cases in safety stock to absorb uncertainty in demand. The company operates weeks per year.
What are the expected annual holding costs? Pick the closest answer.
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