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Nectar Sleep orders a popular bed frame from a supplier in Southeast Asia at a cost of $692 per unit. The holding cost at one
Nectar Sleep orders a popular bed frame from a supplier in Southeast Asia at a cost of $692 per unit. The holding cost at one of Nectar's US distribution centers (DCs) is 32% of the purchase cost per unit per year. Weekly demand for the bed frames at the DC is normally distributed with a mean of 489 units per week and a standard deviation of 67 units per week. Nectar Sleep would like to maintain a 93% cycle service level for its bed frames. Suppose that Nectar Sleep reviews its inventory every 4 weeks and that lead times for orders placed with the supplier are 5 week(s). Compute the base stock level required to meet the desired service level for Nectar Sleep. . Carry all calculations to at least 3 decimal places. a. 3999.0 O b. 4803.0 O c. 296.7 O d. 2666.1 Oe. 4843.3 Of. 4401.0 Og. 4697.7
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