Question: SKU Mean demand ( units / month ) Std . Deviation ( units / month ) Unit cost ( $ / unit ) Unit Sale
SKU
Mean demand unitsmonth
Std Deviation unitsmonth
Unit cost $unit
Unit Sale Price $unit
Optimus Prime
$
$
Bumblebee
$
$
Starscream
$
$
For the data provided for Toys Inc, suppose the holding cost per unit per month is of the cost of the item, and the backorder cost is 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 $ 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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