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Annual demand of a product is 200000 units with standard

Annual demand of a product is 200,000 units, with standard deviation of 35 units.

Assume demand is not constant. Annual holding cost is $1.80 per unit.

The order cost is $ 80 per order. Lead time is 7 days.

The desired service probability is 93 percent. The item is demanded 275 days a year.

State the economic order quantity and reorder point.

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Operation Management: Annual demand of a product is 200000 units with standard

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