Safety Stock and Reorder Point

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Consider the following data.

Inventory Item	Average Demand (Annual)	Sigma (Std. Dev.) of Demand During Lead Time	Item Unit Cost
F-11001	15,000	100	$250.00
K-12002	100,000	300	$2.00
L-13003	250,000	200	$0.20
N-14004	300,000	400	$1.00
P-21001	50,000	60	$125.00
S-22002	80,000	75	$30.00

Note: All items are independent demand items.

Based on the above data:

Calculate the safety stock quantities and the inventory cost associated with safety stock (based on the item unit cost) for the inventory items at four different service levels (50%, 80%, 90%, and 95%).
Develop a table to present the inventory quantities and the safety stock costs at each service level.
Assuming that demand occurs at a steady pace every month (in other words, there is no seasonality or cyclical change in the level of demand), calculate the reorder point for each item assuming a 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 examples.

Needs to have in-text citations and complete reference list. The paper, in-text citations, and reference list needs to be in APA format. No plagiarism.

Assignment 2 Grading Criteria	Maximum Points
Developed a table showing the safety stocks, and inventory costs associated with the safety stocks, for each product at each service level.	30
Developed a table showing the reorder points for each product at a 90% service level (assuming a two month lead time).	15
Used correct spelling, grammar, and professional vocabulary. Cited all sources using APA format.	5
Total:	50