Question: The daily demand is 325 units, with a standard deviation of 30 units. Ordering cost is $10 and the inventory holding cost is $0.30/unit/year. The

The daily demand is 325 units, with a standard deviation of 30 units. Ordering cost is $10 and the inventory holding cost is $0.30/unit/year. The lead time from the supplier is 5 days, with a standard deviation of 1 day. The manufacturer opens 365 days a year. The management wants to have a 99 percent cycle-service level (Z=2.33). What is the total annual cost, assuming a Q system will be used?

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