4 The lead time demand for bathing suits is governed by the discrete random variable shown in Table 11. The company sells an average of 10,400 suits per year. The cost of placing an order for bathing suits is $30, and the cost of holding one bathing suit in inventory for a year is $3. The stockout cost is $3 per bathing suit. Use marginal analysis to determine the optimal order quantity and the reorder point.

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TABLE 11 Lead Time Demand 180 Probability .30 190 .30 200 .15 210 .10 220 .15