Tobacco is shipped from North Carolina to a cigarette manufacturer in Cambodia once a year. The reorder point, without
Posted: Sun May 08, 2022 7:47 pm
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
$75
per kilo per year. Given the following demand probabilities
during the lead time, how much safety stock should
be carried?
Demand During Lead Time (Kilos)
Probability
0
0.1
100
0.1
200
0.2
300
0.4
400
0.2
Part 2
The optimal quantity of safety stock which minimizes expected
total cost is
enter your response here
kilos (enter your response as a whole number).
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
$75
per kilo per year. Given the following demand probabilities
during the lead time, how much safety stock should
be carried?
Demand During Lead Time (Kilos)
Probability
0
0.1
100
0.1
200
0.2
300
0.4
400
0.2
Part 2
The optimal quantity of safety stock which minimizes expected
total cost is
enter your response here
kilos (enter your response as a whole number).