(Answered)-Consider the following inventory problem: The Average Monthly - (2025 Updated Original AI-Free Solution

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Question

Consider the following inventory problem:

The Average Monthly Demand is 400.

?The Standard Deviation of Monthly Demand is 45.

?The Lead Time from order placement to order receipt is 0.75 months.

?The desired service level is 95%.

?The Set Up Cost (or Cost per Order) is $150 per order.

?The Holding Cost is $4 per item per year.

What is the Economic Order Quantity (EOQ)?

Question 10 options:

A) 0

B) 75

C) 122.474

D) 527.995

E) 600