Business, 22.04.2020 00:17 leeorareeves299

Mr. Beautiful, an organization that sells weight training sets, has an ordering cost of $45 for the BB-1 set (BB-1 stands for Body Beautiful Number 1). The carrying cost for BB-1 is $5 per set per year. To meet demand, Mr. Beautiful orders large quantities of BB-1 5 times a year. The stockout cost for BB-1 is estimated to be $15 per set. Over the past several years, Mr. Beautiful has observed the following demand during the lead time for BB-1: Demand During Lead Time Probability 100 0.1 120 0.2 140 0.2 160 0.2 180 0.2 200 0.1 The reorder point for BB-1 is 140 sets. What level of safety stock should be maintained for BB-1?

The optimal quantity of safety stock which minimizes expected total cost is nothing sets .

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Mr. Beautiful, an organization that sells weight training sets, has an ordering cost of $45 for the...

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