Each stock out of a product sold by Arroyo Co. costs P1,750 per occurrence.The company's carrying cost per unit of inventory is P5 per year, and the company orders 1,500 units of product 20 times a year at a cost of p100 per order.The probability of a stock out at various levels of safety stock are;

Unit of Safety Stock Probability of Stock Out

0 0.50

100 0.30

200 0.14

300 0.05

400 0.01

What is the optimal safety stock level?________