Chapter 1

Safety stock = = 1.88(5) = 9.4 drives. ROP = 50 + 9.4 = 59.4 drives. Problem 12.30. In this case, we are not given a specific service level, but a stock-out cost. So, our objective is to select a safety stock level that minimizes the incremental annual cost of carrying the extra stock and experiencing the expected stock … ................
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