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cells Editing You have product x. Following is information related to inventory of this product, for Retailor Sun Company Demand Probabilities every 2 weeks #

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cells Editing You have product x. Following is information related to inventory of this product, for Retailor Sun Company Demand Probabilities every 2 weeks # of Units 900 1000 1100 1200 1300 1400 Probability 11% 18% 25% 15% 13% 10% 8% 800 Product information: Order cost(P) $1000 per order 8 Demand per year (D) 26000 9 Carrying cost per unit( C3+ 10% of Purchase cost 10 Purchase cost per unit $50 lead time = 2weeks 12 Stockout Cost per unit $18 14 Required: Based on this information, Calculate the level of Safety stock required by the firm, by filling the below table: levels resulting in stockout Stockout in Units Probability of Relevant stockout stockout costs Number of orders Per year Expected Relevant Relevant stockout Carrying TOTAL costs costs costs Saftey Stock Levels in Units BUNUNG 200 300 400

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