Question $25$

$0\mathrm{.}5pts$

The Discount Appliance Store uses a continuous review system $($Qsystem$).$ One of the company's items has the following characteristics: Demand $=10$ units$/$week $($assume $52$ weeks per year$),$ Ordering or setup cost $(S)=$$$45/$order$,$ Holding cost $(H)=$$$12/$ unit$/$year$,$ Lead time $(L)=3$ weeks $($constant$),$ Standard deviation of the demand per week $=8$ units, Cycle$-$service level $=90\%.$ Compute the safety stock $($round it to nearest integer$).$

$30$

$18$

$7$

$48$

$37$