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Your HCO orders materials from supplier A. You annual demand for the materials is 15,000 units per year and the standard deviation of weekly demand
Your HCO orders materials from supplier A. You annual demand for the materials is 15,000 units per year and the standard deviation of weekly demand is 40 units. The unit costs, ordering costs and lead-times are provided in the table below. Assume that your desired service level is 98% (z=2.33). Supplier A: Unit cost: 10 Carrying cost (I): 30% Order Cost: 225 Lead-time in weeks: 2 b) How much safety stock would you need to hold for supplier A? Group of answer choices Less than 50 units Between 51-100 units Between 101-150 units More than 150 unit
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