gursoy furnitures sells office chairs ordered from its flagship store. it costs $100 to place an order, and the lead time is two weeks. demand during lead time is n(40, 1.96). gursoy furnitures estimates that each stockout causes a loss of $50 in future goodwill. it pays $60 for each chair and sells it for $100. the annual holding a chair inventory is 30% of its purchase cost. a) assuming that all demand is backlogged, what are the reorder point and the safety stock level? b) to meet 99% service objective, what should be the safety stock level for type 1 service? for type 2 service?
