The demand during lead time for Vibe Pottery has the following probability distribution:

Vibe stocks a product having ordering cost of $309, inventory carrying cost of $25/unit/year, stock out cost of $200 per unit short, an annual requirement of 90 units, and one-month production lead time. What is the minimum-cost lot size and reorder point for this item?

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DEMAND DURING LEAD TIME (IN UNITS) PROBABILITY .01 03 .06 .13 15 2 15 .12 .08 401 03 10