Safety stock?

le 3 Exam 3 11 iswered; Suppose we are analyzing the weekly demand for a given product that averages 1,500 units with a standard deviation = 800 units. Each product costs $10, and incurs a holding cost of 25% per year to carry inventory. The company has an opportunity to set up a warehouse in the local area to avoid the international shipping costs. Each order shipped from Europe currently incurs a fixed transportation and delivery cost of $10.000 If the delivery lead time from Europe is 4 weeks and the company wants to provide its customers a service level of 90%, approximately how much safety stock should it carry? Select one a. 1,025 units b. 4,100 units c. 6,075 units d. 2 050 units Next page evious page Jump to. Assignment ? Solutions You are logged in as Da Journee Fontenette (Log out) ZOU MGMT370-WA Get the mobile app 628 PM 40 X