The manager at the Challenger store in Clementi is planning for the inventory of their printers. Average demand for the printers is 50 units per day, ordering cost is $50 per order,  unit  price  is  $100,  lead-time  is  2  weeks,  carrying/holding  rate  is  20%,  and standard deviation of demand is 20 units per day. Consider 365 days per year. Assume the manager uses a fixed order quantity system. Compute the economic order quantity and the reorder point to have 90% service level. Explain your result.




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