6. (26 points) General Electric Transportation purchases train wheels from a European supplier The following information is known Demand averages 1000 wheels per month, or 12,000 per year Demand varies with a standard deviation of 100 wheels per month. The company would like 95% service level on orders offilters (Z = 1 .95) Wheels cost $1500 each The holding cost is 20% of the item cost PER YEAR. It costs $4500 to order and ship up to one container of wheels It takes 2 months to deliver the w at is the economic order quantity for GE train wheels? B.
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