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Inventory and production management in supply chains book

01/05/2021 Client: natalia389 Deadline: 6 Hours

Consider an item with A = $25; Dv = $4,000/year; σLv = $100; B1 = $30; and r =
0.10 $/$/year.
a. Find the following:
i. EOQ, in dollars
ii. k, using the B1 criterion
iii. SS, in dollars
iv. Annual cost of carrying SS
v. Total average stock, in dollars
vi. Expected number of stockout occasions per year
vii. Expected stockout costs per year

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