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Inventory Control - Calculate Safety Stock

I need to verify the solution of the following problem.

Mr Beautiful, an organization that sells weight training sets, has an ordering cost of $45 for the BB-1 set (BB-1 stands for Body Beautiful Number 1).
The carrying cost for BB-1 is $6 per set per year. To meet demand, Mr. Beautiful orders large quantities of BB-1 7 times a year.
The stockout cost for BB-1 is estimated to be $40 per set.
Over the past several years, Mr. Beautiful has observed the following demand during the lead time for BB-1:

Demand During Lead Time Probability
40 0.1
50 0.2
60 0.2
70 0.2
80 0.2
90 0.1

The reorder point for BB-1 is 60 sets. What level of safety stock should be maintained for BB-1?
The optimal quantity of safety stock which minimizes expected total cost is _____ sets (enter response as a whole number)

Solution Preview

The optimal level of safety stock is the point where probability of demand being greater ...

Solution Summary

The expert examines inventory controls to calculate the safety stocks.