Demand for 2 ounce potato chip bags is normally distributed. The average demand during the lead time is 800,000 bags wit

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Demand for 2 ounce potato chip bags is normally distributed. The
average demand during the lead time is 800,000 bags with a variance
during the lead time of 80,000. Cost per bag is $0.24; ordering
costs are $25 per order; inventory handling cost is $0.04 per bag
per year. Acquisition lead time is six weeks. The company works 50,
5-day weeks per year.
What is the most likely level of safety stock if the desired
stock out risk is 0.2%? a. 800,814 bags b. 800,282 bags c. 814 bags
d. 282 bags e. 288 bags