18.4. The local distributor for Macho Heavy Beer is reconsidering its inventory policy now that only kegs will be sold. The sales forecast for next year (200 days) is 600 kegs. The cost to store a keg of Macho in a refrigerated warehouse is approximately

$3 per year. Placing an order with the factory costs about $4. The demand for Macho during the 1-day lead time is Lead-Time Demand (Kegs) Probability 0 .03 1 .12 2 .20 3 .30 4 .20 5 .12 6 .03