Kids’ toys makes an order once each year an the reorder point, without safety stock, is 200 toys. The inventory holding cost is 5$ per toy per year, and cost of stockout is 15$ per toy per year. The following table shows the probability of demand during lead time: Demand during lead time Probability 0 0.05 100 0.15 200 0.35 300 0.25 400 0.2 With a safety stock of 100 toys, the stockout cost is? What is the probability that there is a need to have a safety stock of 100 toys?

Kids’ toys makes an order once each year an the reorder point, without safety stock, is 200 toys. The inventory holding cost is 5$ per toy per year, and cost of stockout is 15$ per toy per year. The following table shows the probability of demand during lead time: Demand during lead time Probability 0 0.05 100 0.15 200 0.35 300 0.25 400 0.2 With a safety stock of 100 toys, the stockout cost is? What is the probability that there is a need to have a safety stock of 100 toys?

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Description: Kids’ toys makes an order once each year an the reorder point, without safety stock, is 200 toys. The inventory holding cost is 5$ per toy per year, and cost of stockout is 15$ per toy per year. The following table shows the probability of demand dur

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter10: Introduction To Simulation Modeling

Section10.4: Simulation With Built-in Excel Tools

Problem 13P

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