Question $27(20$ points$)$

A company operating under a continuous review system has an average demand of $50$ units per week for the item it produces. The standard deviation in weekly demand is $20$ units. The lead$-$time for the item is six weeks, and it costs the company $$30$ to process each order. The holding cost for each unit is $$10$ per year. The company operates $52$ weeks per year.

Use the information. What is the desired safety stock level if the company has a policy of maintaining a $99\%$ cycle$-$service level?

Question $27$ options:

A$)$

greater than $150$ but less than or equal to $200$ units

B$)$

greater than $200$ units

C$)$

less than or equal to $50$ units

D$)$

greater than $50$ but less than or equal to $100$ units

E$)$

greater than $100$ but less than or equal to $150$ units