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Item Cost - $7.00 Order Cost - $283.00 Annual Hold - 32% of item cost Annual Demand - 22,100 Average Demand - 442 per week Standard deviation of weekly demand 20 per week lead time - 1 week service probability - 95% Determine the order quantity and reorder point. Determine the annual holding and order costs.
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A JIT system uses kanban cards to authorize movement of incoming parts. In one portion of the system, a work center uses an average of 93 parts per hour while running. The manager
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