Question: Nectar Sleep orders a popular bed frame from a supplier in Southeast Asia at a cost of $692 per unit. The holding cost at one

Nectar Sleep orders a popular bed frame from a supplier in Southeast Asia at a cost of $692 per unit. The holding cost at one of Nectar's US distribution centers (DCs) is 32% of the purchase cost per unit per year. Weekly demand for the bed frames at the DC is normally distributed with a mean of 489 units per week and a standard deviation of 67 units per week. Nectar Sleep would like to maintain a 93% cycle service level for its bed frames. Suppose that Nectar Sleep reviews its inventory continuously and that lead times for orders placed with the supplier are constant at 5 week(s). Compute the annual holding cost of the safety stock required to meet the desired service level for Nectar Sleep. - Carry all calculations to at least 3 decimal places. a. $16161.5 b. $590387.7 c. $48966.9 d. $53640.5 e. $109493.2 f. $153021.4 g. $66350.8

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