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A product has a reorder point of 2 5 0 units and is ordered ten times a year. The following table shows the historical distribution

A product has a reorder point of 250 units and is ordered ten times a year. The following table shows the historical distribution of demand values observed during the reorder period.
\table[[Demand,Probability],[240,.1],[250,.2],[rop 260,.4],[270,.2],[280,.1]]
Currently, stockouts are valued at $5 per unit per occurrence, while inventory carrying costs are $2 per unit per year. Should the firm add safety stock? If so, how much safety stock should be added?
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