ABC Company supplies replacement ink cartridges for printers. Daily demand for their cartridges averages 100 units, with a standard deviation of 4 units. The holding cost of the cartridge is $55 per unit per year while the ordering cost is $250 per order. Lead time for replenishment orders is 9 days, and the company operates 250 days per year.

How much safety stock would the company need to carry in a Q system to achieve a 95% service level?  

Answer rating: 100% (QA)

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