Question: A car dealership uses 1 , 2 0 0 cases of oil a year. Ordering cost is $ 4 0 , and annual carrying cost

A car dealership uses 1,200 cases of oil a year. Ordering cost is $40, and annual carrying cost is
$3 per case. The manager wants a service level of 99 percent. (1 point)
a. What is the EOQ?
b. What level of safety stock is appropriate if the lead time demand is normally distributed
with a mean of 80 cases and a standard deviation of 6 cases?

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