Question: Linda Lechner has just been severely chastised for her inventory policy. Sue Surrowski, her boss, believes that the service level should be either 95% or

Linda Lechner has just been severely chastised for her inventory policy. Sue Surrowski, her boss, believes that the service level should be either 95% or 98%. Compute the safety stock levels for a 95% and a 98% service level. Linda knows that the carrying cost of BX-5 is 50 cents per unit per year. Compute the carrying cost that is associated with a 90%, a 95%, and a 98% service level.

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