If the standard deviation of lead time demand is 10 units,management has a preferred service level of 99.9% (z = 3) ,and holding costs are $0.75 per unit per month,the annual cost of holding safety stock for this product will approximate to
A) $22.50.
B) $270.00.
C) $90.00.
D) $89.91.
Correct Answer:
Verified
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