Question: Consider 2 items with the following characteristics: Item Unit Value ($/unit) Demand, D (units/yr) XL (units) L(units) 1 10 300 100 10 2 1 300

Consider 2 items with the following characteristics: Item Unit Value ($/unit) Demand, D (units/yr) XL (units) L(units) 1 10 300 100 10 2 1 300 100 35 a. What are the safety stocks in units? What are the safety stocks in units in dollars? b. What is the P1 value associated with each item? c. Reallocate the same total safety stock (in dollars) so that two items have the same value of P1. d. What reduction in total safety stock is possible if both items have P1=95%?

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