Question: Weekly demand for a certain product is normally distributed with mean 2 0 0 and standard deviation 1 0 . The source of supply is

Weekly demand for a certain product is normally distributed with mean 200 and standard deviation 10. The source of supply is reliable and maintains a constant leadtime of 1 week. The cost of placing an order is $10 and annual holding cost is $3 per unit. Assume 52 weeks per year. Management wants to satisfy a 95% probability of not running out of stock in any one ordering cycle.

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