v Tesla uses a perpetual inventory system to make inventory decisions...
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Tesla uses a perpetual inventory system to make inventory decisions about a replacement part for a Model X. Annual demand has been forecast to be 2,700 units and the business operates 300 days per year. The standard deviation of daily demand has been forecast to be 14 units. The order lead time is 4 days. Tesla pays $10 to hold a unit for a year and $300 to place an order. Tesla's target service level is 98%. What is Tesla's total annual inventory cost? (Hint: include the carrying costs for safety stock; provide your answer in two decimal points.) Your
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