The standard deviation of demand during the lead time is 100 units.

a. Calculate the safety stock required for the following service levels: 75%, 80%, 85%, 90%, 95%, 99.99%.

Calculate the change in safety stock required to increase the service levels from 75%
to 80%, 80% to 85%, 85% to 90%, 90% to 95%, and 95% to 99.99%. What conclusion do you reach? LO.1