Question: Weis's paint store uses a ( Q , R ) inventory system to control its stock levels. For a monthly demand is approximately normal, with
Weis's paint store uses a Q R inventory system to control its stock levels. For a monthly demand is approximately normal, with mean and standard deviation
Wrisculaty popular white latex po intmai, with mean and standard deviation g
Replenishment lead time for this paint is about weeks. Each can of paint costs the store $ Although excess demands are back ordered, the store owner estimates that unfilled demands cost about $ each in bookkeeping and lossOfgoodwill costs. Fixed costs of replenishment are $ per order, and holding costs are based on a percent annual rate of interest.
a What are the optimal lot sizes and reorder points for this brand of paint?
b What is the optimal safety stock for this paint?
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