Stage $4321$

Lead Time $($weeks$)10532$

Cost Added $($$$/$unit$)20302030$

We assume that stage one serves external demand, and that the service time for stage $1$ is set to $.$ We assume that the inbound service time for stage $4$ is zero. The demand bound is given by:

$,$

with $=100$ per week, $\backslash$sigma $=30$ per week, and z$=2.$

Suppose that the inventory holding cost per year is $10\%$ of the value of the inventory. For this question, you should only consider $$all$-$or$-$nothing$$ safety stock strategies as described in video and readings.

Assume that the operating strategy is to hold a safety stock inventory only at stage $1,$ and to hold no safety stock at any other stage.

Assume that the operating strategy is to hold a safety stock inventory at each stage.

Problem VI$\mathrm{.}3.$c

For this new strategy, how much safety stock $($in units$)$ is needed at stage one to assure guaranteed service? Round to two decimal places.