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Tobacco is shipped from the East to a cigarette manufacturer in Lagos once a year. The reorder point, without safety stock, is 2 0 0
Tobacco is shipped from the East to a cigarette manufacturer in Lagos once a year. The reorder point, without safety stock, is kilos. The carrying cost is N per kilo per year, and the cost of a stock out is N per kilo per year. Given the following demand probabilities during the reorder period, how much safety stock should be carried?
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