Determine the optimal order quantity for onions

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Daily demand of onions follows approximately a normal distribution with a mean of 6000 pounds and a standard deviation of 1000 pounds. Onions cost the company $0.15 per pound, and the ordering cost is $180. Lead time for delivery is four days, and the company desires a service level of 95%. Management wants to determine the optimal order quantity for onions as well as the reorder point.

I need this question to be done in an excel and please show all the steps and formulas.

Reference no: EM132226533

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