Mr. Beautiful, an organization that sells weight training sets, has an ordering cost of $35 for theBB-1 set (BB-1 stands for Body Beautiful Number1). The carrying cost for BB-1 is $20per set per year. To meet demand, Mr. Beautiful orders large quantities of BB-1 4times a year. The stock out cost for BB-1 is estimated to be $15per set. Over the past several years, Mr. Beautiful has observed the following demand during the lead time for BB-1:
|
Demand During Lead Time
|
Probability
|
|
100
|
0.1
|
|
120
|
0.2
|
|
140140
|
0.2
|
|
160160
|
0.2
|
|
180180
|
0.2
|
|
200200
|
0.1
|
The reorder point for BB-1 is 140sets. What level of safety stock should be maintained for BB-1?
The optimal quantity of safety stock which minimizes expected total cost is? (Enter your response as a whole number).