15 . Mr. Beautiful , an or ganization that sells weight training sets , has an ordering cost $40 for the BB - 1 set . ( BB - 1 stands for Body Beautiful Number 1 . ) The carrying cost for BB - 1 is $5 perse per year . To meet demand , Mr . Beautiful orders large quantities of BB - I seven 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 50 0. 2 60 0. 2 70 0. 2 80 0.2 90 10 The reorder point for BB - 1 is 60 sets . Which level of safety stock should be maintained for BB 1