1. (14 points) A retailer (RT) orders product from a supplier (SU) using full truckload...
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1. (14 points) A retailer (RT) orders product from a supplier (SU) using full truckload mode. The retailer owns the product once it is shipped. Each item RT purchases from SU costs $130. A truckload holds 300 units, costs $4,500, and takes 1 week to deliver. RT uses a holding rate of 0.25 and desires a service level of 97%. They face annual demand that is normally distributed with a mean of 12,000 units and a standard deviation of 8,000 units. Determine the average annual dollars that RT spends on pipeline, holding, and safety stock (report each separately)
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