The following applies to Questions 13-15. ACME Manufacturing is planning a Periodic Review process and a Min-Max system to manage its inventory of switches. During each inventory review, if the inventory position falls to or below a minimum level (s), the policy is to order enough switches to raise the inventory position to a maximum level (S). The average weekly demand for switches is 120 with a Standard Deviation of 30. The Lead time for Replenishment is 9 weeks. Analysis has determined that the Ordering cost per order s $100, and the weekly total holding cost per unit (weekly holding rate x cost/unit) is $0.4. The head of the Supply Chain has demanded that the Service Level for the switches is 99%. Looking at the z-table, this is a z value of 2.33 13. The Safety Stock level that ACME should adopt is (rounded up to the next highest number Acmes minimum level (s) point (the point at which they re-order) for this product should be:

Group of answer choices

a. 205

b.410

c. 825

d.1290

e. 1570