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Please show each step and where you got the numbers used for the solution. Superstore sell baby monitors. They have determined its ROP is 70
Please show each step and where you got the numbers used for the solution.
Superstore sell baby monitors. They have determined its ROP is 70 . Holding cost per baby monitor per year is $10 and stockout cost is $15 per system. The optimum number of orders per year is 4 . Based on historical experience, the probability distribution for inventory during the reorder period has been calculated as: What is the best reorder point for routers using safety stock logic? Your answer must include the total cost for each reorder point and you must state which reorder point you recommend. In other words, just stating the reorder point will not be sufficient.|Step by Step Solution
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