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Ferndale Distributors is reviewing its inventory policy with respect to safety stocks of its most popular product. Four safety stock levels were analyzed and annual stockout costs estimated for each level.  The cost of this product is $20 per unit, holding costs are 4% per year, and the cost of short-term funds is 10% per year. What is the optimal safety stock level?A. 1,000 units. B. 1,250 units. C. 1,500 units. D. 2,000 units. |