A Product Has a Reorder Point of 260 Units,and Is

question 1

Essay

A product has a reorder point of 260 units,and is ordered ten times a year.The following table shows the historical distribution of demand values observed during the reorder period.
Currently,stockouts are valued at $5 per unit per occurrence,while inventory carrying costs are $2 per unit per year.Should the firm add safety stock? If so,how much safety stock should be added?

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Definitions:

Action Query

In databases, a query that makes changes to data or database structures, such as updating, deleting, or inserting records.

Run Button

An interface control that, when clicked, executes or starts a program, script, or command.

Change Data

The process of altering data elements in a database, file, or software application.

Append Query

A specific type of database query that adds the results of a query to an existing table, rather than just displaying the results.