Determine the total stock -out cost and carrying cost

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Assume a company uses an item for which it places 10 orders per year, the cost of stock-out is $30, the carrying cost is $.50 per year per unit, and the following probabilities of a stock out has been estimated for various levels of safety stock Safety stocks in units -Probability of Stock out 0-40%, 50-20%, 100-10%,200-5% a. In each level of safety stocks, determine the total stock -out cost and the total of stock-out and carrying cost

Reference no: EM131028555

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