The mean of demand is 1,000 units/week and the standard deviation of demand in each week is 200 units. Holding an item in inventory for each week cost $1. Orders take 8 weeks to arrive. We want an in-stock probability of 0.99 (z = 2.33). What is the cost for holding inventory per unit?

Answer rating: 100% (QA)

To calculate the cost for holding inventory per unit you can use the Economic Order Quantity EOQ mod... View the full answer