Question: Authentic Thai rattan chairs shown in the photo are delivered

Authentic Thai rattan chairs (shown in the photo) 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 $30 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 ................... 0.2
100 ................... 0.2
200 ................... 0.2
140 ................... 0.2
100 ................... 0.2




Sale on SolutionInn
Sales15
Views738
Comments
  • CreatedJuly 23, 2013
  • Files Included
Post your question
5000