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Weekly demand for electric motors at a Japanese motor manufacturer is normally distributed, with a mean of 1,000 and standard deviation of 1,000. Motors are currently assembled in China and delivered at a cost of 20,000 yen/motor. The supplier takes eight weeks to supply an order. A local Japanese manufacturer has offered to deliver motors with a lead time of one week at cost of 20,400 yen per motor. The motor manufacturer is targeting a CSL of 99% and monitors its inventory continuously. The manufacturer incurs an annual holding cost of 25%. Should the manufacturer accept the local supplier’s offer?

Please show all formulas and work! Has to be done on Excel! Please show me step by step! Attached is what’s required!

Weekly demand for electric motors at a Japanese motor manufacturer is normally distributed, with a...

 
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