A distributor is planning to calculate the the optimal service level given the following information.

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June 7th, 2024

A distributor is planning to calculate the the optimal service level given the following information. Based on past data, sales response rate is 0.12% change in revenue for a 1% change in the service level (fill rate). Trading margin is $18 per item, inventory carrying cost is 24% per year, annual sales through the warehouse is 120,000 items. Cost of each item is $75, demand standard deviation is 300 items for a week, and the lead time is 4 weeks.a. Calculate ?Pb. Calculate ?Cc. Calculate ?Zd. Determine the optimal service level

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