Question: The average demand for an item is 32 units a day in a retail store. The unit cost of the item is $13. It costs

The average demand for an item is 32 units a day
The average demand for an item is 32 units a day in a retail store. The unit cost of the item is $13. It costs $41 to place an order with its supplier, and the inventory carrying cost per unit per year is 4% of the unit cost in the store. The store opens 270 days a year. The store manager wishes to avoid the stock-out of this item with a probability of 95%, and this requires carrying a safety stock of 91 units of the item in the store. What is the average inventory amount for this item in the store when total inventory cost is minimized? Numbers only, keep 3-decimal if not exact, either round up or down is ok

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