You are the operations manager of a firm that uses the continuous review inventory control system....
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You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 252 days a year and has the following characteristics for its primary item: Demand = 25,000 units/year Ordering cost = $25/order Holding cost = $1/unit/year Lead time 4 days Standard deviation in daily demand = 2 units %3D Service level = 95% (z-1.65) What is the reorder point? You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 252 days a year and has the following characteristics for its primary item: Demand = 25,000 units/year Ordering cost = $25/order Holding cost = $1/unit/year Lead time 4 days Standard deviation in daily demand = 2 units %3D Service level = 95% (z-1.65) What is the reorder point?
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