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Business, 25.11.2021 14:00 coryintheswamp
Daily demand for a certain pocket watch is normally distributed with a mean of 29 units and a standard deviation of 3 units. Supply is certain with a lead time of 6 days. The cost of placing an order is $25.10 and the annual carrying cost is 20 percent of the unit price of $50.00. The watch company opens 300 days per year. If the watch seller wants to maintain a 95% service level, the economic order quantity and reorder point, respectively, are:
a. 209 units, 186 units
b. 209 units, 174 units
c. 209 units, 9.4 units
d. 383 units, 0 units
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