Question: The demand for a product is normally distributed with an average of 15,000 units/year. The standard deviation of daily demand is 15 units. The lead

The demand for a product is normally distributed

The demand for a product is normally distributed with an average of 15,000 units/year. The standard deviation of daily demand is 15 units. The lead time is also normally distributed with an average of 12 days and standard deviation of 2 days. The ordering cost is $60/order and the holding cost is $20/unit.year. The company operates 250 days in a year and the management wants a 98% cycle service level. If the company use the continuous review system to control the inventory, what should be the approximate safety stock level in order to minimize the total cost? Lutfen birini sein: a. 988 b. 107 827 d. 268

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