Question: In a business setting operating under demand uncertainty with an average annual demand of 500 and a standard deviation of 50, with the safety factor

In a business setting operating under demand uncertainty with an average annual demand of 500 and a standard deviation of 50, with the safety factor set 2 and lead time being 15 days, the optimum safety stock to hold is under the 300 working days assumption:

  1. 5
  2. 15
  3. 25
  4. 50

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