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A demand that follows the following discrete distribution is used to analyze the service level for JNC Company. If the company carries safety stock equal

A demand that follows the following discrete distribution is used to analyze the service level for
JNC Company. If the company carries safety stock equal to 3 items, find its Service Level.
D 123456789
Probability .03.07.10.15.30.15.10.07.03
Problem # 2 Inventory Analysis
How much safety stock should company ABC carry if they want a service level of at least 95%?
D 1234567891011
Prob. .02.05.07.11.14.20.15.12.09.040
Problem # 3 Inventory Analysis
A. Yitos Candy Shop has a demand of 50,000 units/year for a certain box of their candy, the
ordering cost is $5.00 per order, and the handling cost is 15% of cost/unit/year. Determine how
many units should be ordered for Yitos Candy Shop if the unit cost was $25.
B. How much safety stock should Yitos Candy Shop carry if she wants at least a 98% service
level?

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