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Current Mode Mix Proposed Mode Mix 10 Average transit time (days) 16 Std. deviation of transit time (days) Demand per day (units) 2000 Service level

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Current Mode Mix Proposed Mode Mix 10 Average transit time (days) 16 Std. deviation of transit time (days) Demand per day (units) 2000 Service level 86.12% Net cost per unit $75 Inventory carrying cost 30% Price per unit $125 Cost of capital 16% * early deliveries have the same impact on safety stocks as late deliveries 2000 95.0% $75 30% $125 16% 5. What is the difference in units of safety stock inventory between the current mode mix and proposed mode mix? a. 4,320 b. 7,720 c. 5,120 d. none of the above

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