Business, 21.04.2020 01:16, bcifuentes

Mr. Beautiful, an organization that sells weight trainingsets, 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 $20 per set per year. To meet demand, Mr. Beautiful orders large quantities of BB-1 7 times a year. The stockout cost for BB-1 is estimated to be $45

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
Value 1 10 0.1
Value 2 30 0.2
Value 3 50 0.2
Value 4 70 0.2
Value 5 90 0.2
Value 6 110 0.1

The reorder point for BB-1 is 50 sets. What level of safety stock should be maintained forBB-1?
The optimal quantity of safety stock which minimizes expected total cost is nothing

Answers: 1

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