Scenario $9\mathrm{.}14$

Demand $=100,000$ units$/$year

Number of days per year $=250$ weeks

Standard deviation of weekly demand $=50$ units

Average lead time $=5$ days

Standard deviation of lead time: $2$ days

Cycle$-$service level $=99\%$

A continuous review system is used to control inventory.

Use the information in Scenario $9\mathrm{.}14.$ What safety stock should the firm use for this product?

greater than $2,500$ units

greater than $1,500$ units but less than or equal to $2,500$ units

greater than $0$ but less than or equal to $500$ units

greater than $500$ units but less than or equal to $1,500$ units