The average number of times a product is ordered per year is ten, with a reorder point of 260 units. The historical dist

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The average number of times a product is ordered per year isten, with a reorder point of 260 units. The historical distributionof demand values recorded during lead time is displayed in thetable below.
Demand
Probability
240
0.1
250
0.2
260
0.4
270
0.2
280
0.1
Stockouts are currently valued at MYR5 per unit per occurrence,compared to MYR2 per unit per year for inventory carrying costs.Should the company buy more safety stock and how much? Support youranswer with calculations.