Tobacco is shipped from North Carolina to a cigarette manufacturer in Cambodia once a year. The reorder point, without s

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Tobacco Is Shipped From North Carolina To A Cigarette Manufacturer In Cambodia Once A Year The Reorder Point Without S 1 (69.54 KiB) Viewed 38 times

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 $10 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? Probability Demand During Lead Time (Kilos) 0 0.1 0.1 100 200 0.2 300 0.4 400 0.2 The optimal quantity of safety stock which minimizes expected total cost is kilos (enter your response as a whole number).