Question: new logistics analyst has approached you regarding a potential problem. Her analysis dicates the cost of a back order is $ 7 0 for our

new logistics analyst has approached you regarding a potential problem. Her analysis dicates the cost of a back order is $70 for our Autographed Footballs, but she is not sure hat the appropriate safety stock should be. Given this back order cost, what probability of a ock out would be appropriate to use to manage the inventory levels?
ootball cost
nnual Demand
ost per Order
ost to hold the item per year
conomic order quantity
ead Time
tandard Deviation of Forecasted Demand During Lead Time
$200
5000
$250
40%
177
2 wee
20
10%
5%
4%
1%
 new logistics analyst has approached you regarding a potential problem. Her

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