Question $21$

$0\mathrm{.}5pts$

Annual demand for a product is $12,000$ units; weekly demand is $250$ units with a standard deviation of $40$ units. The cost of placing an order is $$100,$ and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $$0\mathrm{.}65$ per unit. Suppose the production manager is told to reduce the safety stock, which was calculated based on $90\%$ percent customer service level, of this item by $40$ units. If this is done, what will the new customer service level be $($approximately$)?$

$76\%$

$79\%$

$82\%$

$85\%$

$88\%$