item cost - 700 order cost - 28300 annual hold -, Operation Management

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item cost - 700 order cost - 28300 annual hold -

Item Cost - $7.00 Order Cost - $283.00 Annual Hold - 32% of item cost Annual Demand - 22,100 Average Demand - 442 per week Standard deviation of weekly demand 20 per week lead time - 1 week service probability - 95% Determine the order quantity and reorder point. Determine the annual holding and order costs.

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