question as the treasury officer of manufacturing company given the cost of stock ou 4281389
Question
As the treasury officer of manufacturing company; given the cost of stock out is $1.00 per unit and the carrying or holding cost is $9.00 per unit what is the expected stock out cost plus expected carrying cost of holding 8600 units of inventory?
Usage Distribution per Inventory Cycle
|
State |
1 |
2 |
3 |
4 |
|
Usage (in units) |
6200 |
7400 |
8600 |
9800 |
|
Probability |
0.10 |
0.40 |
0.40 |
0.10 |
|
Expected usage |
8000 |
|
|
|