Question: 19. a. How much would Alien Auto spend each year to hold inventory if it tried to stock enough oil filters to give a 90

19.

a. How much would Alien Auto spend each year to hold inventory if it tried to stock enough oil filters to give a 90 percent service level? 95 percent? 97 percent? 99 percent?

99.9 percent?

b. Draw a graph of service level versus annual inventory cost.

c. Where would you set the level? Discuss your reason.

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