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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 200 kilos. The
Tobacco is shipped from North Carolina to a cigarette manufacturer in Cambodia once a year. The reorder point, without safety stock, is 200 kilos. The carrying cost is $15 per kilo per year, and the cost of a stockout is $65 per kilo per year. Given the following demand probabilities during the lead time, how much safety stock should be carried? The optimal quantity of safety stock which minimizes expected total cost is kilos (enter your response as a whole number)
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