Question: Use the demand information for Model AB in Exhibit 14.15 to compute the average demand per week and the standard deviation of demand per

Use the demand information for Model AB in Exhibit 14.15 to compute the average demand per week and the standard deviation of demand per week. Next, compute the safety stock level that would achieve a 98% service level. (Note: Assume there are 4 weeks per month, the weekly standard deviation = (monthly standard deviation)/ Compute the target inventory level (T) and the average inventory level. What is the average inventory carrying cost (carrying rate=25)? (Note: Average Inventory = d(P)/2+B; d = demand per time period; P = review period; B = safety stock)

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