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The Home Depot has maintained an 99.87% service level policy for inventory of string trimmers. Mean demand during lead time is 170 trimmers, and the
The Home Depot has maintained an 99.87% service level policy for inventory of string trimmers. Mean demand during lead time is 170 trimmers, and the standard deviation during lead time is 60 trimmers. The annual cost of carrying one trimmer in inventory is $6. a. What safety stock would be consistent with the service level? ________________ units b. What is the holding cost for the safety stock? $ ____________________
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