Question: Store B orders on a weekly basis. Its weekly demand is 40 units with a standard deviation of 10 units. The holding cost is $10

Store B orders on a weekly basis. Its weekly demand is 40 units with a standard deviation of 10 units. The holding cost is $10 per unit per week and a 0.99 in-stock probability is desired. What is Store Bs weekly inventory holding cost per unit if lead time is two weeks?

  • A. $32.09
  • B. $30.09
  • C. $24.09
  • D. $25.09

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