The carrying cost is 15 per kilo per year and the cost of a


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 is $15 per kilo per year, and the cost of a stockout is $70 per kilo per year. Given the following demand probabilities during the lead time, how much safety stock should be carried?

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Project Management: The carrying cost is 15 per kilo per year and the cost of a
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