22.Store B orders on a weekly basis. Its weekly demand is 50 units with a standarddeviation of five units. The holding cost is $10 per unit per week and a 0.99 in-stockprobability is desired.a) What is Store B's weekly inventory holding cost if lead time is two weeks?b) What is Store B's weekly inventory holding cost per unit?

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Answered: a) What is Store B's weekly inventory…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You are provided with the following data: inventory - to -sale conversion period = 100days Sale - to - cash conversionperiod = 46 days Purchase - to -payment conversion period30 days What is the operatingcycle?
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a) What is Store B's weekly inventory holding cost if lead time is two weeks? b) What is Store B's weekly inventory holding cost per unit?