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Question
A lumber distributor has a demand for 10,000 plywood planks per year. The firm operates 250 working days per year. On average, delivery of an order takes 5 working days both lead cost to hold one plank is $12.00 Please show your work for partial credit.
a. What is the economic order quantity?
b. What is the reorder point?
c. What is the time between orders?
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