Problem 1243 Authentic Thai Rattan Chairs Delivered Gary Schwartz S Chain Retail Stores Ca Q35458780
Problem 12.43 Authentic Thai rattan chairs are delivered toGary Schwartz’s chain of retail stores, called The KathmanduShop, once a year. The reorder point, without safety stock, is200 chairs. Carrying cost is $40 per unit per year, and the costof a stockout is $60 per chair per year. Given the followingdemand probabilities during the lead time, how much safety stockshould be carried? Demand During Lead Time Probability 0 0.2 100 0.2 200 0.2 300 0.2400 0.2 The optimal quantity of safety stock which minimizesexpected total cost is nothing units (enter your response as awhole number).
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