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Which safety stock option has the largest amount of total cost? 1 point The Shalom Company wishes to determine the amount of safety stock that
Which safety stock option has the largest amount of total cost? 1 point The Shalom Company wishes to determine the amount of safety stock that it should maintain for Product ACMAS ABC to result in the lowest cost. Stockout cost - P80 per occurrence; Carrying cost of safety stock -P2 per unit; Number of purchase orders - 5 per year. The options available to Shalom are as follows: Units of Probability of Running Safety Stock out of Safety Stock 10 50% 30 30% 50 10% 55 5%
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