Mr. Beautiful, an organization that sells weight training sets, has an ordering cost of $40 for the BB-1 set. (BB-1 stands for Body Beautiful Number 1.) The carrying cost for BB-1 is $5 per set per year. To meet demand, Mr. Beautiful orders large quantities of BB-1 7 times a year. The stockout cost for BB-1 is estimated to be $50 per set. Over the past several years, Mr. Beautiful has observed the following demand during the lead time for BB-1:

DEMAND DURING LEAD TIME PROBABILITY 40 .1 50 .2 60 .2 70 .2 80 .2 90 .1 1.0 The reorder point for BB-1 is 60 sets. What level of safety stock should be maintained for BB-1? lop1