Question: C&A orders on a weekly basis. Its weekly demand is 100 units with a standard deviation of 10 units. The holding cost is $10 per
C&A orders on a weekly basis. Its weekly demand is 100 units with a standard deviation of 10 units. The holding cost is $10 per unit per week and a 0.99 in-stock probability is desired. What is C&As weekly inventory holding cost if lead time is three weeks?
| In-stock probability | Safety factor, z |
| 0.9000 | 1.28 |
| 0.9800 | 2.05 |
| 0.9900 | 2.33 |
| 0.9950 | 2.58 |
| 0.9999 | 3.72 |
A.
3411
B.
3466
C.
3211
D.
3266
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