Question: Question 8 2 pts A Cake company uses 4.787 quart bottles of Chocolate sauce each year. The sauce costs 4 per bottle and is served

Question 8 2 pts A Cake company uses 4.787 quart bottles of Chocolate sauce each year. The sauce costs 4 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 12 and holding costs are 22 percent of the purchase price. Once the order is placed, it takes 5 weeks for an order to arrive. The company works for 45 weeks per year. The company is considering to use the inventory system techniques which minimizes the inventory cost. Assume that both lead time and customer demand are variable. Customer demand's standard deviation = 28 units per week and standard deviation for lead time = 2. Find out the safety stock needed to achieve 95% customer service level

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