Huckaby Motor Services, Inc., rebuilds small electrical items such as motors, alternators, and transformers, all using a certain type of copper wire. The firm’s demand for this wire is approximately normal, averaging 20 spools per week, with a standard deviation of 6 spools per week. Cost per spool is R24; ordering costs are R25 per order; inventory handling cost is R4 per spool per year. Acquisition lead time is 4 weeks. The company works 50, 5-day weeks per year.
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