Question: Question 7 2 pts A Cake company uses 4,875 quart bottles of Chocolate sauce each year. The sauce costs 3 per bottle and is served

Question 7 2 pts A Cake company uses 4,875 quart bottles of Chocolate sauce each year. The sauce costs 3 per bottle and is served only in full bottles for food safety purposes. The company's inventory manager calculated that each time an order is placed, it costs 11 and holding costs are 23 percent of the purchase price. The company works for 48 weeks per year. The company is considering to use the inventory system techniques which minimizes the inventory cost. Now, suppose that customer demand is constant as given in the problem, but lead time is variable. Assume that the lead time is normally distributed with a mean (L) of 2 weeks and standard deviation (LT) 4 weeks. Find out the safety stock needed to achieve 95% customer service level

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