must be done in Microsoft word

all computations must be shown

2 Tobacco is shipped from North Carolina to a cigarette manufacturer in Cambodia once a year. The reorder point without safety stock, is 200 kilos. The carrying cost $15 per kilo per year, and the cost of a stock out is $50 per kilo per year. Given the following demand probabilities during lead time, how much safety stock should be carried? Demand During Probability Lead Time 100 .1 200 .2 300 .2 400 .4 500 .1 TWELFTH EDITION OPERATIONS MANAGEMENT Sustainability and Supply Chain Management Oy JAY HEIZER BARRY RENDER CHUCK MUNSON 2 Tobacco is shipped from North Carolina to a cigarette manufacturer in Cambodia once a year. The reorder point without safety stock, is 200 kilos. The carrying cost $15 per kilo per year, and the cost of a stock out is $50 per kilo per year. Given the following demand probabilities during lead time, how much safety stock should be carried? Demand During Probability Lead Time 100 .1 200 .2 300 .2 400 .4 500 .1 TWELFTH EDITION OPERATIONS MANAGEMENT Sustainability and Supply Chain Management Oy JAY HEIZER BARRY RENDER CHUCK MUNSON