Question: Use the data below to answer the question below. Average daily demand 1 0 0 cases per day Standard deviation of daily demand 2 0

Use the data below to answer the question below.
Average daily demand 100 cases per day
Standard deviation of daily demand 20 cases per day
Average Lead Time 2 days (constant)
Inventory holding cost 20% of the item's value per year
Purchase Price $40 per case
Order Cost $10 per order
Stockout Cost $20 per case
Desired Service Level 80%
Assume the company operates 365 days per year
What is the recommended economic order quantity (EOQ)?

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