An item in the product line for the food company discussed in question 8 has the following

Question:

An item in the product line for the food company discussed in question 8 has the following characteristics:
Sales response rate = 0.15% change in revenue for a 1% change in the service level
Trading margin = 0.75 per case
Annual sales through the warehouse = 80,000 cases
Annual carrying cost = 25%
Standard product cost - $10.00
Demand standard deviation = 500 cases per 1 week lead time Lead time = 1 week
Find the optimum service level for this item.