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Question 8 (2 points) You are the operations manager of a firm that uses the continuous review inventory control system. Supp
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Answer #1

Daily demand = Annual demand / Number of working days

= 25000 / 252 = 99.21

REORDER POINT = (DAILY DEMAND * LEAD TIME) + (Z * STANDARD DEVIATION * SQRT (LEAD TIME))

= ( 99.21 * 4) + ( 1.65 * 5 * SQRT(4))

= 413.33 or 413

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