Children’s art sets are ordered once each year by AshokKumar, Inc., and the reorder point, without safety stock ( dL ),is 100 art sets. Inventory carrying cost is $10 per set per year, and the cost of a stockout is $50 per set per year. Given the fol-lowing demand probabilities during the lead time, how much safety stock should be carried? DEMAND DURING LEAD TIME PROBABILITY0 .150 .2ROP S 100 .4150 .2200 .11.0

Children’s art sets are ordered once each year by AshokKumar, Inc., and the reorder point, without safety stock ( dL ),is 100 art sets. Inventory carrying cost is $10 per set per year, and the cost of a stockout is $50 per set per year. Given the fol-lowing demand probabilities during the lead time, how much safety stock should be carried? DEMAND DURING LEAD TIME PROBABILITY0 .150 .2ROP S 100 .4150 .2200 .11.0

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Description: Children’s art sets are ordered once each year by AshokKumar, Inc., and the reorder point, without safety stock ( dL ),is 100 art sets. Inventory carrying cost is $10 per set per year,and the cost of a stockout is $50 per set per year. Given the fol-

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
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Authentic Thai rattan chairs are delivered to Gary Schwartz's chain of retail stores, called The Kathmandu Shop, once a year. The reorder point, without safety stock, is 200 chairs. Carrying cost is $40 per unit per year, and the cost of a stockout is $70 per chair per year. Given the following demand probabilities during the lead time, how much safety stock should be carried? Demand During Lead Time Probability 0 0.2 100 0.2 200 0.2 300 0.2 400 0.2 The optimal quantity of safety stock which minimizes expected total cost is _ units (enter response as a whole number).
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