How much safety stock should be kept


The lead time for an item is 2 days. The distribution of the average monthly consumption is shown in the table below. Carrying cost is 25%, the value of the item $200, and the ordering cost is $40. How much safety stock should be kept if the average number of stock outs per cycle is to be kept under 2?

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Basic Statistics: How much safety stock should be kept
Reference No:- TGS0108470

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