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point, wu is $70 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 0.2 0.2 0.2 100 200 300 400 0.2 0.2 The optimal quantity of safety stock which minimizes expected total cost is units (enter your response as a whole number).

point, wu is $70 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 0.2 0.2 0.2 100 200 300 400 0.2 0.2 The optimal quantity of safety stock which minimizes expected total cost is units (enter your response as a whole number).

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Authentic Thai rattan chairs are delivered to Gary Schwartz's chain of retail stores, called The Kathmandu Shop, once a year. The reorder point, without safety stock, is 200 chairs. Carrying cost is $20 per unit per year, and the cost of a stockout is $70 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 0.2 100 0.2 200 0.2 300 0.2 400 0.2 The optimal quantity of safety stock which minimizes expected total cost is units (enter your response as a whole number).
Transcribed Image Text:Authentic Thai rattan chairs are delivered to Gary Schwartz's chain of retail stores, called The Kathmandu Shop, once a year. The reorder point, without safety stock, is 200 chairs. Carrying cost is $20 per unit per year, and the cost of a stockout is $70 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 0.2 100 0.2 200 0.2 300 0.2 400 0.2 The optimal quantity of safety stock which minimizes expected total cost is units (enter your response as a whole number).
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