Posted by **Candace** on Tuesday, July 17, 2012 at 9:52am.

A sporting goods company has a distribution center that maintains inventory of fishing rods. The fishing rods have the following demand, lead time, and cost characteristics:

Average demand = 95 units per day, with a standard deviation of 18 units

Average lead time = 14 days with a standard deviation of 2 days

250 days per year

Unit cost = $30

Desired service level = 95%

Ordering cost = $55

Inventory carrying cost = 20%

What is the???

Annual ordering cost

Annual inventory carrying cost

Annual product cost

Total cost

Average cycle stock

Average inventory

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