Question: The Best Buy deskpro computer inventory can only be ordered in multiples of 12 and each unit of inventory is valued at $450 with carrying

The Best Buy deskpro computer inventory can only be ordered in multiples of 12 and each unit of inventory is valued at $450 with carrying costs of 25 percent. Per stockout cost is $675. Holding 12 units of safety stock for an entire year allows the firm to prevent 20 stockouts; moving from 12 units to 24 units of safety stock allows 16 additional orders to be filled. Likewise, the following table shows the number of stockouts that can be prevented. Calculate the safety stock level for Best Buy. Additional order filled 20 16 12 8 6 4 2 A. 84 B. 48 C. 60 D. 78

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