Mr. Beautiful, an organization that sells weight training sets, has an ordering cost of $45 for...

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Mr. Beautiful, an organization that sells weight training sets, has an ordering cost of $45 for the BB-1 set (BB-1 stands for

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Answer 1

Answer #1

for Given ROP=60 sets,

Optimal quantity of safety stock that minimizes the total cost =(70-60)*0.20)+((80-60)*0.20)+((90-60)*0.10)

Optimal quantity of safety stock that minimizes the total cost =9 sets

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Answer 2

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