• • 12.44 A local hypermarket in Kuwait supplies juice boxes from a manufacturer in Saudi Arabia. The reorder point, without safety stock, is 800 boxes. The carrying cost is KWD 20 (Kuwaiti Dinar) per box per year, and the ordering cost is KWD 50 per box per year. Given the following demand probabilities during the lead time, how much safety stock should be carried?

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DEMAND DURING LEAD TIME (BOXES) PROBABILITY 0 0.1 400 800 0.2 0.2 1,200 0.4 1,600 0.1