Question: Consider the following information for a given certain company: Average Demand = 5 2 , 0 0 0 units / year Ordering costs = $

Consider the following information for a given certain company:
Average Demand =52,000 units/year
Ordering costs =$45? order
Standard deviation of weekly demand =110 units
Holding costs =
$0.50/unit/year
Lead time =2 weeks
Cycle-service level =90%
Number of weeks per year =52 weeks
At the most recent review an inventory clerk just checked the inventory of this item and found 2700 units. There were no scheduled receipts and no back orders. The amount of safety stock is
Between 190-200
Between 210-220
Between 230-240
Between 250-260
None of the above
 Consider the following information for a given certain company: Average Demand

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