Assignment:
The demand for barbeque grills has been fairly large in the past several years, and Estate Supplies, Inc., usually orders new barbeque grills five times a year. It is estimated that the ordering cost is $60 per order. The carrying cost is $10 per grill per year. Furthermore, Estate Supplies, Inc., has estimated that the stockout cost is $50 per unit. The reorder point is 650 units. Although the demand each year is high, it varies considerably. The demand during the lead time is as follows (see Table for Problem 30 at the top of the next page). The lead time is 12 working days. How much safety stock should Estate Supplies, Inc., maintain?
