Richard’s Convenience Store orders two-liter bottles of root…
Richard’s Convenience Store orders two-liter bottles of root beer on a weekly basis. Weekly demand for root beer is 50 units with a standard deviation of 5 units. The holding cost is $0.50 per bottle per week and a 0.99 in-stock probability is desired. What will be the effect on the average on-hand inventory of root beer if lead time decreases from 3 weeks to 2 weeks?
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