Formulate an inventory management system

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Reference no: EM13962005

Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. Item cost $ 9.00 Standard deviation of weekly demand 30 per week Order cost $ 250.00 Lead time 3 weeks Annual holding cost (%) 34 % of item cost Service probability 98 % Annual demand 27,500 Average demand 550 per week Determine the order quantity and reorder point.

Reference no: EM13962005

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