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You have to select a transportation carrier to use for replenishing your inventory. Demand for the item is distributed Normally with a mean of 500 units and a standard deviation of 100 units per week. The cost of the item to include delivery is $450. You want a CSL of 95%.
Option 1: Delivery leadtime mean=4 weeks, StdDev = 1 weekOption 2: Delivery leadtime mean=4 weeks, StdDev = 0.5 weekOption 3: Delivery leadtime mean=3 weeks, StdDev = 1 week
Suppose you decide to use Option 1?
Question 1: What is the average safety stock in items? Enter your answer rounded UP to the nearest integer.
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