Dayton Electronics demands a part at a daily rate of 40 units. The lead time for replenishment

Question:

Dayton Electronics demands a part at a daily rate of 40 units. The lead time for replenishment is four days for this item. The standard deviation of demand during the lead time is 8. Dayton Electronics prides itself on having a high level of customer service and strives to achieve a service level of 99%. How much safety stock should Dayton Electronics hold for this item? What will be the annualized cost of this safety stock if the opportunity for Dayton Electronics is 15% and the item costs $125?
Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...