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Tobacco is shipped from North Carolina to a cigarette manufacturer in Cambodia once a year. The reorder point, without safety stock, is kilos. The carrying
Tobacco is shipped from North Carolina to a cigarette manufacturer in Cambodia once a year. The reorder point, without safety stock, is kilos. The carrying cost is $ per kilo per year, and the cost of a stockout is $ per kilo per year. Given the following demand probabilities during the lead time, how much safety stock should be carried?
Demand During Lead TimeKilos
Probability
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