Calculate safety stock quantities

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Reference no: EM133019417

Using the information in the table above and knowledge that the standard deviation of daily demand is 7 units, calculate "safety stock" quantities and new reorder points for "no stockout" probabilities of 90, 95 and 99 percent. Use EOQ Template 1.

Why do firms carry safety stock given that it increases inventory cost?

Reference no: EM133019417

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