Assignment:
1. A product is delivered to Monica's company once a year. The ROP, without safety stock, is 300 units. Carrying cost is $25 per unit per year, and the cost of a stockout is $80 per unit per year. Given the following demand probabilities during the reorder period, how much safety stock should be carried?
2. Barb's company has compiled the following data on a small set of products:
Perform an ABC analysis on her data.