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 1,500 and a standard deviation of (1,031). Motors
are currently assembled in Taiwan and delivered at a cost of 1,993$? motor. The supplier takes four weeks to supply
an order. A domestic manufacturer has offered to supply motors with a lead time of 1.5 weeks on average at a cost
of 2,181 $/motor. The motor manufacturer is targeting a CSL of 99.5 percent and monitors its inventory
continuously. The manufacturer incurs a holding cost of 30%. Should the manufacturer accept the local supplier's
offer?
 Weekly demand for motors is normally distributed with a mean of

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