Question: *** Please provide the solution, formula, and calculation *** A toy manufacturing company purchases electronic kits from a supplier once a year. The distribution of

*** Please provide the solution, formula, and

*** Please provide the solution, formula, and calculation *** A toy manufacturing company purchases electronic kits from a supplier once a year. The distribution of demand during the lead time is presented through the probabilistic model: O unit (with the probability of 20%) 100 units (with the probability of 10%) 200 units (with the probability of 25%) 300 units (with the probability of 30%) 400 units (with the probability of 15%) The reorder point (without safety stock) is 200 units, the stock-out cost is $60 per unit/year, and the carrying cost is $15 per unit/year. To have minimum total cost: a) How much safety stock should be carried? b) What is the reorder point, including the safety stock? c) How much is the total cost (carrying cost + stock-out cost)

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