the safety stock

Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
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2.10 A company has an annual demand of 1000 units,
ordering cost of Rs.100/ order and carrying cost
of Rs. 100/unit-year. If the stock-out costs are
estimated to be nearly Rs. 400 each time the
company runs out-of-stock, the safety stock
justified by the carrying cost will be
Transcribed Image Text:2.10 A company has an annual demand of 1000 units, ordering cost of Rs.100/ order and carrying cost of Rs. 100/unit-year. If the stock-out costs are estimated to be nearly Rs. 400 each time the company runs out-of-stock, the safety stock justified by the carrying cost will be
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