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Comfortable chairs are delivered to XYZ chain of retail stores, called The Queen's Shop, once a year. The reore carrying cost is $30 per unit per year, and the cost of a stockout is $60 per chair per year. Given the following much safety stock should be carried? Demand During Lead Time Probability 02 100 200 300 400 0.2 0.2 0.2 02 100 200 300 400 The optimal quantity of safety stock which minimizes the expected total cost is 0 units

Comfortable chairs are delivered to XYZ chain of retail stores, called The Queen's Shop, once a year. The reore carrying cost is $30 per unit per year, and the cost of a stockout is $60 per chair per year. Given the following much safety stock should be carried? Demand During Lead Time Probability 02 100 200 300 400 0.2 0.2 0.2 02 100 200 300 400 The optimal quantity of safety stock which minimizes the expected total cost is 0 units

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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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, 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 100 200 300 400 0.2 0.2 02 0.2 100 200 300 02 400 The optimal quantity of safety stock which minimizes the expected total cost is 0 • units
Transcribed Image Text: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 100 200 300 400 0.2 0.2 02 0.2 100 200 300 02 400 The optimal quantity of safety stock which minimizes the expected total cost is 0 • units
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