What will be the annual cost of holding safety stock

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Reference no: EM13957913

A firm experience demand with a mean of 100 units per day. Lead time demand is normally distributed with a mean of 1000 unites and a standard deviation of 200 units. It cost $6 to hold one unit for one year. If the firm wants to meet 90% of all demand on time, what will be the annual cost of holding safety stock? -assume that each order costs $50.

Reference no: EM13957913

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