#10 question

10. Assume that average inventory consists of the following three components: [1] Safety stock as already computed. Average cycle stock inventory. [3] In-transit inventory between Kentucky and Montana and stores, [2] Calculate the total costs associated with holding inventories for each service level. Assume that there are 360 working days in the year. GB #7 ANNUAL COST OF GOLDEN BEST INVENTORY FOR EACH SERVICE LEVEL 92.0% Safety Stock Cycle Stock In-Transit Stock 1650 x $33,30 x 0.275 = (3768/2) $33.30 x 0.275 = (685 x 7.5)