Question $7$

$0\mathrm{.}2pts$

A new logistics analyst has approached you regarding a potential problem. Her analysis indicates the cost of a back order is $$70$ for our Autographed Footballs, but she is not sure what the appropriate safety stock should be$.$ Given this back order cost, what probability of a stock out would be appropriate to use to manage the inventory levels?

Football cost

Annual Demand

Cost per Order

Cost to hold the item per year

Economic order quantity

Lead Time

Standard Deviation of Forecasted Demand During Lead Time

$$200$

$5000$ units

$$250$

$40\%$

$177$

$2$ weeks

$20$

$10\%$

$5\%$

$4\%$

$1\%$