Question: Demand = 1 0 0 , 0 0 0 units / year Number of days per year = 2 5 0 days Standard deviation of

Demand=100,000 units/year
Number of days per year=250 days
Standard deviation of daily demand=50 units
Average lead time=5 days
Standard deviation of lead time: 2 days
Cycle-service level=99%
A continuous review system is used to control inventory.
What safety stock should the firm use for this product?

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