Tesla uses a perpetual inventory system to make inventory decisions about a replacement part for a Model
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Question:
Tesla uses a perpetual inventory system to make inventory decisions about a replacement part for a Model X Annual demand has been forecast to be units and the business operates days per year. The standard deviation of daily demand has been forecast to be units. The order lead time is days. Tesla pays $ to hold a unit for a year and $ to place an order. Teslas target service level is
What is Tesla's total annual inventory cost? Hint: include the carrying costs for safety stock; provide your answer in two decimal points.
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