The following plot shows 5 possible solutions for a supply chain network design. Which is likely the best solution?

Suppose a reorder point system is used to manage inventory, where the annual demand is 10,000 and the optimal order quantity is calculated to be 50. Over the last year, there were 10 stockouts. In five of the stockouts there was a shortage of six units for each stockout; in the other five stockouts there was a shortage of two units for each stockout. What is the service level (SL)?

a) 99.9%

b) 99.6%

c) 95%

d) 70%

e) none of the above