Safety Stock and Reorder Point 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 .

1. Safety Stock and Reorder Point
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

2. 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