Order quantity model-what is optimal service level

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Reference no: EM13961271

In a single period order quantity model, if the underage cost is four times the overage cost, then

A) what is the optimal service level (i.e., critical fractile)?

B) using the optimal service level from part A), what is the optimal order quantity if the demand is normally distributed with a mean of 70 and variance of 9?

Reference no: EM13961271

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