Steve's shop sells seashells by the seashore.Steve desires to offer at least a 90 percent in-stock availability of shells for his customers.He sells 40 shells each day on average,with a standard deviation of 20.When he orders replenishments of shells,it typically takes one day for the supplier to deliver,with a standard deviation of one day.If Steve's holding cost is $0.50 per shell per year,how much money will he spend each year in holding costs in order to provide a 90 percent service level? (Pick the number closest to the correct answer.)
A)$13
B)$29
C)$58
D)$125

Question

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The Answer of Steve's shop sells seashells by the seashore.Steve desires to offer at least a 90 percent in-stock availability of shells for his customers.He sells 40 shells each day on average,with a standard deviation of 20.When he orders replenishments of shells,it typically takes one day for the supplier to deliver,with a standard deviation of one day.If Steve's holding cost is $0.50 per shell per year,how much money will he spend each year in holding costs in order to provide a 90 percent service level? (Pick the number closest to the correct answer.)
A)$13
B)$29
C)$58
D)$125

Steve's Shop Sells Seashells by the Seashore