Question: Suppose the mean absolute deviation of the forecast errors is 10. Calculate the safety stock to achieve 90% type I service level target. (NORM.INV(0.9, 0,

Suppose the mean absolute deviation of the forecast errors is 10. Calculate the safety stock to achieve 90% type I service level target. (NORM.INV(0.9, 0, 1)=1.281. Standard Error = 1.25*MAD)

a. 16.01

b. 20.01

c. 24.01

d. None of the above

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