You are a distributor of steel cables that are used in many different kinds of construction applications. you stock this product in reels of either 2,000 feet or 5,000 feet. your demand for the 5,000-foot reels is:
demand (per month) = 64
variation in demand (per month) = 25
lead time (in weeks) = 5 (it is sourced from overseas, hence the long lead time.)
desired service level = 92%
1. given the above information, what should be the safety stock for this item? (assume 30 days per month. display your answer to two decimal places.)