A service station uses 1,200 cases of oil a year. Ordering costs is $40 and annual carrying cost is $3 per case. The station owner has specified an annual service level of 99%. A. What is the optimal order quantity? B. What level of safety stock is appropriate if lead time demand is normally distributed with a mean of 80 cases and a standard deviation of 6 cases?

a) 179 cases

b) 14 cases

Explanation:

EOQ = √(2SD/H)

D = annual demand = 1,200

S = order cost = 40

H = holding cost per unit = 3

EOQ = √[(2 x 1,200 x 40)/3] = 178.89 = 179 cases

z for 99% service level = 2.33

safety stock = 2.33 x 80 x (6/80) = 13.98 - 14 cases

D. Create a dashboard and add filters for users, opportunities, accounts, and cases.

Explanation:

From the question, we are informed that the sales manager at Universal Containers would like a dashboard so as to be able to view each of the sales representative's opportunities, accounts, and related cases.

Based on the above scenario, the recommended solution will be to create a dashboard and add then add the filters for users, accounts, opportunities, and cases. When these are done, it'll be easier for the sales manager to view the details of the sales representative.