Childrens art sets are ordered once each year by Ashok Kumar, Inc., and the reorder point, without

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Children’s art sets are ordered once each year by Ashok Kumar, Inc., and the reorder point, without safety stock (dL), is 100 art sets. Inventory carrying cost is $10 per set per year, and the cost of a stockout is $50 per set per year. Given the following demand probabilities during the lead time, how much safety stock should be carried?

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Operations Management Sustainability And Supply Chain Management

ISBN: 234357

12th Edition

Authors: CHUCK MUNSON & AMIT SACHAN AND . JAY HEIZER , BARRY RENDER

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