38 A product is delivered to Monicas company once a year. The ROP, without safety stock, is...

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38 A product is delivered to Monica’s company once a year. The ROP, without safety stock, is 300 units. Carrying cost is $25 per unit per year, and the cost of a stockout is $80 per unit per year. Given the following demand probabilities during the reorder period, how much safety stock should be carried?

DEMAND DURING REORDER PERIOD PROBABILITY 100 0.3 200 0.1 300 0.3 400 0.2 500 0.1

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