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problem 1) Based on the above data:

• Compute the safety stock quantities and inventory cost associated with safety stock (based on item unit cost) for inventory items at four various service levels (50%, 80%, 90%, and 95%).

• Develop table to present the inventory quantities and safety stock costs at each service level.

• Suppose that demand occurs at steady pace every month (or we can say, there is no seasonality or cyclical change in the level of demand), compute the reorder point for each item assuming lead time of two months and a service level of 90%.

• Develop a table to present the reorder points for all products under these conditions (two month lead time and service level of 90%).

Support your responses with suitable exs.

Cite any sources in APA format.

2354_safety stock and reorder point.jpg

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