4 A B D E F G . 1 1 Evaluating Service Level for Continuously Stocked Product 2 3 For continuously stocked products, which would have a higher CSL: a product that is backlogged or a product that is lost? Why? Hint: Compare Eq 13.6 vs 13.7. 4 5 6 7 Od 8 9 Stockouts result in Input Backorders Lot size Q 400 Average demand per week D 100 Standard Deviation of Demand per week, o 20 Average demand per YEAR 5200 Unit cost C $ 3.00 Annual holding cost fraction h 20% Annual holding cost H 0.60 Lead time L (weeks) 2 Mean demand during lead time Standard deviation during lead time Cost of understocking Cuper unit Critical fractile CSL* 10 11 $ 12 13 14 15 16 17 SS ROP 18 19 20