Question: 2. A product is ordered once each year, and the reorder point without safety stock (dL) is 100 units. Inventory carrying cost is $10 per

2. A product is ordered once each year, and the

2. A product is ordered once each year, and the reorder point without safety stock (dL) is 100 units. Inventory carrying cost is $10 per unit per year, and the cost of a stockout is $50 per year. Given the following demand probabilities during the reorder period, how much safety stock should be carried? DEMAND DURING REORDER PERIOD PROBABILITY 0.1 50 .2 ROP .4 150 .2 200.1 A100

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