Question: Current Mode Mix Proposed Mode Mix 10 Average transit time (days) 16 Std. deviation of transit time (days) Demand per day (units) 2000 Service level

Current Mode Mix Proposed Mode Mix 10 Average transit time (days) 16 Std. deviation of transit time (days) Demand per day (units) 2000 Service level 86.12% Net cost per unit $75 Inventory carrying cost 30% Price per unit $125 Cost of capital 16% * early deliveries have the same impact on safety stocks as late deliveries 2000 95.0% $75 30% $125 16% 5. What is the difference in units of safety stock inventory between the current mode mix and proposed mode mix? a. 4,320 b. 7,720 c. 5,120 d. none of the above

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