Question: Suppose that in the ShopCo example, your manager thinks you are ordering Hurricane Drills too frequently and wants you to set your Review Period to

Suppose that in the ShopCo example, your manager

Suppose that in the ShopCo example, your manager thinks you are ordering Hurricane Drills too frequently and wants you to set your Review Period to 6 weeks. Recall that: - Hurricane Drills cost $75 each - Annual holding charge is 15%. Assume 52 week year. - Forecasted annual demand of Hurricane drills is ~N(3,400, 400) - Lead Time is 1 week - Desired CSL = 95% - Hurricane has a minimum order quantity (MOQ) of 240 drills - Orders need to be in multiples of 12 drills to fit on pallets What is your expected annual cost of cycle and safety stock

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