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Unformatted text preview: amount assessed. Monthly expenses are distributed according to a Normal distribution with a mean of $6000 and standard deviation of $2000. Determine the optimal amount that the financial officer should invest each month. 3 . .. Consider the following data: K = $200 h = $10/unityr. c(B) = $100/unit short R = 1 mo. L = 1 mo. Annual demand is Normally distributed with mean = 600 and st. dev. = 400 (a) Determine the optimal orderuptolevel, S. (b) If the leadtime is Normally distributed with variance = .8, determine a new S and the *additional* safety stock cost over that associated with part (a). (c) Determine whether SLM(1) = .99 would provide better protection against stocking out than the policy found in part (a)....
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 Spring '08
 GeorgeWilson
 Operations Research

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