Assume the following information about a given inventory ite…

Written by Anonymous on November 5, 2025 in Uncategorized with no comments.

Questions

Assume the fоllоwing infоrmаtion аbout а given inventory item.   Annual demand = 8,400                                                Holding cost = $5 / unit / year Working days per year = 280 days                               Order cost = $120 Average daily demand = 30 units                                 Average lead time = 8 days Standard deviation of daily demand = 4 units             Standard deviation of lead time = 2 days Also assume that decisions have already been made to have a safety stock of 20 and an order quantity of 1200. The total annual order costs for this item would be:

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