Question: Nectar Sleep orders a popular bed frame from a supplier in Southeast Asia at a cost of $376 per unit. The holding cost at one

Nectar Sleep orders a popular bed frame from a supplier in Southeast Asia at a cost of $376 per unit. The holding cost at one of Nectar's US distribution centers (DCs) is 19% of the purchase cost per unit per year. Weekly demand for the bed frames at the DC is normally distributed with a mean of 178 units per week and a standard deviation of 45 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 normally distributed with a mean of 3 week(s) and a standard deviation of 4 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. $102338.3 b. $113674.6 c. $75525.7 d. $51169.1 e. $8218.7 f. $153507.4 g. $397503.5

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