Question: SKU Mean demand ( units / month ) Std . Deviation ( units / month ) Unit cost ( $ / unit ) Unit Sale

SKU
Mean demand (units/month)
Std. Deviation (units/month)
Unit cost ($/unit)
Unit Sale Price ($/unit)
Optimus Prime
15000
2000
$16
$20
Bumblebee
10000
3000
$20
$23
Starscream
10000
1500
$14
$16
For the data provided for Toys Inc, suppose the holding cost per unit per month is 3% of the cost of the item, and the backorder cost is 20% of the profit margin per month. The lead time to replenish the toys from the manufacturer in South Eastern China is two months. The fixed cost of an order is $500 for any toy order.
For the same service level requirement and replenishment lead time across all items, you will find the safety stock is the greatest for:

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