Question: Please solve this question below A local company has asked for your help in developing a service level policy. They currently dont hold safety stock

Please solve this question below

A local company has asked for your help in developing a service level policy. They currently dont hold safety stock for any of their products. They are considering implementing a 98% service level for Products U4044 and V4055.. Evaluate this decision. In other words, is safety stock warranted for these products? what are the costs and benefits of adding safety stock associated with a 98% service level?

Product SKU	Average Daily Demand	Standard Deviation of Daily Demand	Unit Cost ($)	Lead Time (days)
R4011	40	3	25	6
S4022	20	6	90	5
T4033	30	3	500	8
U4044	50	9	550	10
V4055	500	10	4	3

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