A warehouse stocks three different items: SKU 1, SKU 2, and SKU 3. Information on each of

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A warehouse stocks three different items: SKU 1, SKU 2, and SKU 3.

Information on each of these items is provided in this table:

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The warehouse uses the same reorder point for all three items: it always places an order when 120 units are left in stock.

a. How much safety stock is implied by this reorder point?

b. What is the service level provided by this reorder point, in the case of each of these three items?

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