Mr. Beautiful, an organization that sets 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 $18 per set per year. To meet demand, Mr. Beautiful orders large quantities of BB-1 5 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:
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|
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Demand During Lead Time
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Probability
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100
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0.1
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120
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0.2
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140
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0.2
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180
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0.2
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180
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02
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200
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0.1
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The reorder point for BB-1 is 140 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 your response as a whole number).