Store A orders on a weekly basis. Its weekly demand is 50 units with a standard deviation of five units.



Store A orders on a weekly basis. Its weekly demand is 50 units with a standard deviation of five units. The holding cost is $10 per unit per week and a 0.99 in-stock probability is desired. What will be the effect on Store A’s average on-hand inventory if lead time declines from five weeks to three weeks, other parameters remaining unchanged




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