Comfortable chairs are delivered to XYZ chain of retail stores, called The Queen's shop, once a year. The reorder point,

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Comfortable Chairs Are Delivered To Xyz Chain Of Retail Stores Called The Queen S Shop Once A Year The Reorder Point 1 (19.11 KiB) Viewed 72 times

Comfortable chairs are delivered to XYZ chain of retail stores, called The Queen's shop, once a year. The reorder point, without safety stock, is 200 chairs. The carrying cost is $30 per unit per year, and the cost of a stockout is $60 per chair per year. Given the following demand probabilities during the lead time, how much safety stock should be carried? Demand During Lead Time Probability 0 02 100 02 200 02 02 400 02 The optimal quantity of safety stock which minimizes the expected total cost is OOOOO NNNNN 300 • units 0 100 200 300 Next pag 400