What is the total annual logistical cost (sum of shipping, in-transit holding cost, and safety…

➤ How is safety stock cost computed for truck delivery considering variability and service level?
Compute safety stock using demand variability and desired service level: safety stock = z × σd × √L, where z is the service factor, σd is demand standard deviation per period, and L is lead time in periods. Then annual safety‑stock cost equals safety stock times unit cost times holding rate. Round up to prevent stockouts.