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Regional Supermarket is open 360 days per year. Daily use of cash register tape averages 10 rolls. Usage appears normally distributed with a standard deviation of 2 rolls per day. The cost of ordering the tape is $1, and the carrying cost are 40 cents per roll a year. Lead time is 3 days.

a. What is the EOQ?
b. What ROP will provide a lead time service level of 96 percent?
c. What is the expected number of units short per cycle with 96 percent? Per year?
d. What is the annual service level?

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