A retailer purchases a given item from a supplier and then s…
A retailer purchases a given item from a supplier and then sells the product to its customers. The following data are estimated for the item under consideration. Take ALL intermediate computations to the FOURTH decimal place. Annual demand = 5000 Holding cost = $4 / unit / year Working days per year = 200 days Order cost = $50 Average daily demand = 25 units Average lead time = 6 days Standard deviation of daily demand = 3 units Standard deviation of lead time = 1.5 days If the best order quantity was 500, and if you didn’t carry any safety stock, the average inventory level would be…