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the daily demand for flour is 16 pounds, the standard deviation in daily demand is 3 pounds, the holding cost is 0.2$/pound, delivery lead time

the daily demand for flour is 16 pounds, the standard deviation in daily demand is 3 pounds, the holding cost is 0.2$/pound, delivery lead time (days) is 4, item cost is $30 per 50lbs bag, the EOQ is 704.27, and rop is 64lbs. Now the daily demand for sugar is 15 pounds, standart deviation of daily usage is 4 pounds, holding costs is 0.25$/pound, delivery lead time( days) is 4, item cost is $45 per 50 lbs bag, EOQ is 609.92, ROP is 60 lbs. The company also operates 310 days a year. Remarkable Cupcakes currently uses a 95% service level for of their materials. They are reviewing this policy for flour and sugar. Would you recommend a 98% service level for any of these materials? In other words, what would be the costs and benefits of this policy ChatGPT

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