What would be the total annual inventory related cost


Brauch's Pharmacy has an expected annual demand for a leading pain reliever of 800 boxes, which sell for $6.50 each. Each order costs $6.00, and the inventory-carrying charge is 20 cents. The expected demand during the lead time is normal, with a mean of 25 and a standard deviation of 3. Assuming 52 weeks per year, what reorder point provides a 95 percent service level? How much safety stock will be carried? If the carrying charge were 25 cents instead, what would be the total annual inventory related cost? "

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Operation Management: What would be the total annual inventory related cost
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