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?
Definitions:
Leukemia
A type of cancer that affects the blood and bone marrow, characterized by the production of an excessive number of abnormal white blood cells.
Diabetes Mellitus
A chronic condition characterized by high levels of sugar in the blood due to the body's inability to produce or properly use insulin.
Hypoglycemia
A condition characterized by abnormally low blood sugar levels, often resulting in symptoms such as dizziness and sweating.
Chemotherapy
A type of cancer treatment using one or more anti-cancer drugs to kill rapidly growing cells in the body.
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