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Explanation c0=$0.30,cu=$0.95 a. Service level =(0.95)/(0.95+0.30)=0.76.z-value for 76% is 0.71 Q=280+0.7156=320 b. Probability of running out of stock is one minus the service level or

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Explanation c0=$0.30,cu=$0.95 a. Service level =(0.95)/(0.95+0.30)=0.76.z-value for 76% is 0.71 Q=280+0.7156=320 b. Probability of running out of stock is one minus the service level or 10.95=0.24 or 24%

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