### Inventory Management Problem**Problem Statement:**Weekly demand for DVD-Rs at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 150 boxes. Currently, the store places orders with a supplier with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. The replenishment lead time is 4 weeks. The fixed order cost per order is $100, and each box costs the retailer $10. The inventory holding cost is 25% per year.**Objective:**Calculate the order-up-to level $ S $ that the retailer should use as a baseline during periodic reviews, given the order quantity of 5,000 boxes and a reorder point of 4,200 boxes.**Numerical Input:**- **Response:** 1500This text appears as part of a larger educational module on inventory management, guiding users through understanding and calculating key logistic and supply chain metrics. ### Inventory Management Problem#### Problem Statement:Weekly demand for DVD-Rs at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 150. Currently, the store places orders to the supplier with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Additional details include:- Replenishment lead time: 4 weeks- Fixed order cost per order: $100- Cost per box: $10- Inventory holding cost: 25% per yearWith an assumption of 50 weeks in a year, determine the optimal order quantity the retailer should order.#### Response Section:- **Numeric Response:** 2040The problem requires the application of inventory management concepts to calculate the economic order quantity (EOQ) based on the given parameters, such as demand rate, lead time, and various costs associated.

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Answered: Weekly demand for DVD-Rs at a retailer…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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