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What is the EOQ

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Question - Regional Supermarket is open 365 days per year. Daily use of cash register tape averages 20 rolls. Usage appears normally distributed with a standard deviation of 5 rolls per day. The cost of ordering tape is $1.50, and carrying costs are 38 cents per roll a year. Lead time is 4 days.

a. What is the EOQ?

b. What ROP will provide a lead time service level of 51.6 percent?

Reference no: EM133037819

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