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Business, 01.04.2021 22:10 caseychandler030418

After testing the color-mixing machine for a few weeks, the manager realizes that a 95 percent service level for each of the 5 basic SKU colors is not sufficient because the mixing of each of the original 200 SKUs can only be completed if all of the component colors are available. Assuming all 5 of the basic SKUs are required to mix any one of the orig- inal 200 SKUs, what service level for basic SKUs achieves a 95 percent service level for all of the original 200 SKUs? Using this new (higher) service level, what is the average inventory level across all 5 basic SKUs?

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