Freeport Corporation finds that demand for surfboards has average demand of 10 units per day, with a standard deviation of 3 units. Lead time from the supplier averages 12 days, with a standard deviation of 2 days. The item costs $50 and the inventory carrying cost is 30%. You decide that you want this company to give better service to its customers. You decide that a 99% service level is appropriate. How much safety stock must be carried to offer this service level?

53

45

60

65