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 A firm uses 14

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 A firm uses 14.000 units per year of a particular item. Holding costs are 18% per year and fixed costs of ordering are Tk. 135.50 and paper work cost Tk 12.75 per order. The demand is normally distributed with a standard deviation of 2200 units. The replenishment rate is infinite. The item costs Tk 9.50 per unit and lead time is 10 days with standard deviation of 3 days. If the product is stock out, it incurs Tk. 670 in stock out costs. Use 360 days year. Calculate: i The optimum order quantity and no of orders. The total cost of this inventory strategy per year. The optimum safety stock 11. 111