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Solved: Tobacco is shipped from North Carolina to a cigarette manufacturer in Cambodia once

MSD340 2017Summer OL1 Nyree Dowa 8/16/17 6:54 PM Test: Final Exam Time :02:22 28 Submit Test This Question: 6 pts 4 of 24 (0 complete) This Test: 105 pts possible Tobacco is shipped from North Carolina to a cigarette manufacturer in Cambodia once a year. The is $75 per kilo per year. Given the tolowing demand probabilities during the lead time. how much safety stock shouid be carried? reorder point withosfety stoc s 200 klo. The caryng cost s 20 per kilo ger year and thecost ofa sockoudt 100 200 300 0.1 02 0.4 Theoptrnal quantity of safety stock which mnizes expected to alost is□kios enteryo rme seam e met Enter your answer in the answer box End Pgon Home
Tobacco is shipped from North Carolina to a cigarette manufacturer in Cambodia once a year. The recorder point, without safety stock, is 200 kilos. The carrying cost is $20 per kilo per year, and the cost of a stockout is $75 per kilo per year. Given the following demand probabilities during the lead time, how much safety stock should be carried? The optimal quantity of safety stock which minimizes expected total cost is kilos (enter your response as a whole number).

Expert Answer

Please like the answer. The correct answer is 100 kgs becuase the minimum costis correspinding to it.

Explanation

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