Question: Weekly demand for motors is normally distributed with a mean of 1 , 5 0 0 and a standard deviation of ( 1 , 0
Weekly demand for motors is normally distributed with a mean of and a standard deviation of Motors
are currently assembled in Taiwan and delivered at a cost of motor. The supplier takes four weeks to supply
an order. A domestic manufacturer has offered to supply motors with a lead time of weeks on average at a cost
of $motor The motor manufacturer is targeting a CSL of percent and monitors its inventory
continuously. The manufacturer incurs a holding cost of Should the manufacturer accept the local supplier's
offer?
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