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. . M/s Tyrotubes trades in four wheeler tyres and tubes. It stocks sufficient quantity of tyres of almost every vehicle. In year end 2019-20,

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M/s Tyrotubes trades in four wheeler tyres and tubes. It stocks sufficient quantity of tyres of almost every vehicle. In year end 2019-20, the report of sales manager revealed that M/s Tyrotubes experienced stock-out of tyres. The stock-out data is as follows: Stock-out of Tyres No. of times of Stock Out 100 2 80 5 50 10 20 20 10 30 0 33 M/s Tyrotubes loses Rs. 150 per unit due to stock-out and spends Rs. 50 per unit on carrying of inventory. DETERMINE optimum safest stock level

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