Question: Best Buy's monthly demand for an Olympus Digital Camera FX 5500 is Poisson distributed with a mean of 3 cameras/month. The order quantity is


Best Buy's monthly demand for an Olympus Digital Camera FX 5500 is

Best Buy's monthly demand for an Olympus Digital Camera FX 5500 is Poisson distributed with a mean of 3 cameras/month. The order quantity is 6 cameras, holding costs are $6.00 per camera per year, the backorder cost per outage is $12.00/unit, and the lead-time is 1 month. Determine the safety stock.

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