Question: JN portal CSUN email Chapter 1 2 , question 3 1 : Mr . Beautiful, an organization that sells weight training sets, has an ordering

JN portal
CSUN email
Chapter 12, question 31:
Mr. Beautiful, an organization that sells weight training sets, has an ordering cost of $40 for the BB-1 set. (BB-1 stands for Body Beautiful Number 1.) The carrying cost for BB-1 is $5 per set per year. To meet demand, Mr. Beautiful orders large quantities of BB-1 seven times a year. The stockout cost for BB-1 is estimated to be $50 per set. Over the past several years, Mr. Beautiful has observed the following demand during the lead time for BB-1:
\table[[DEMAND,],[DURING,],[LEAD TIME,PROBABILIT],[40,.1],[50,.2],[60,.2],[70,.2],[80,.2],[90,.1],[,1.0]]
The reorder point for BB-1 is 60 sets. What level of safety stock should be maintained for BB1?
Safety stock =0 unit
Safety stock =30 units
Safety stock =10 units
Safety stock =20 units
Safety stock =40 units
 JN portal CSUN email Chapter 12, question 31: Mr. Beautiful, an

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