Problem:
The Cool Redistributing Company 1. With summer approaching, people are thinking about getting their lawns in shape. The Cool Redistributing Company (CRC) would like to maintain an 80% service level policy for the inventory of string trimmers. Daily demand for string trimmers is normally distributed with a mean of 25. The physical holding cost is estimated to be $6/year*unit. CRC sells the trimmers for $100 with a 20% profit margin. The annual cost of capital at CRC is estimated to be 5% of the cost of inventory. Assume that there are 50 weeks in one year and that each week is 7 days long.