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

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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.
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? 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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