Your company's experience of being out-of-stock in respect of a key item is as follows: Figures in

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Your company's experience of being out-of-stock in respect of a key item is as follows:

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Figures in brackets represent percentage of times the item was out of stock. Assume that the stockout costs are Rs 100 per unit. The carrying cost of inventory is Rs 50 per unit. Determine the optimal level of stockout inventory (safety stock).

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Quantitative Techniques In Management

ISBN: 99835

4th Edition

Authors: N D VOHRA

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Question Posted: Aug 30, 2024 07:02 AM

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Your company's experience of being out-of-stock in respect of a key item is as follows: Figures in

Question:

Stockout (No. of Units) Number of Times 2,000 4 (1) 1,600 8 (2) 1,000 12 (3) 400 16 (4) 200 40 (10) 0 320 (80) 400 (100)

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Quantitative Techniques In Management

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