13. ABC company has a choice of selecting from 2 different suppliers. The cost is the same, but they are concerned about the amount of safety stock they will have to have and the total cost of carrying inventory. Given the following information, calculate the ROP, Safety Stock and Average Inventory Carrying Cost for cach supplier using a service level of 98% : Supplier 1: Lead time: 8 Days with Std Deviation of 2 Supplier 2: Lead time: 9 Days with Std Deviation of 1 Average Daily Demand 24 with a Sta Dev of 4. Order Quantity =400 Cost per unit $10 Inventory Carrying Cost 10% Which supplier would you choos? The company is planning on a new marketing campaign that could change both the average daily demand and the standard deviation of that demand. Recalculate the ROP, Safety Stock and Average Inventory Carrying Cost for each supplier using a service level of 98% for both marketing Marketing Campaign 1: daily demand =40 STDEV =10 Marketing Campaign 1: daily demand =30 STDEV =5 Which will have the biggest impact on safety stock levels? Variation in lead time or Variation in Demand