Use payoff table to determine the order point

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Reference no: EM131234834

If long cost per unit = $20, short cost per unit = $30, and historical DDLT data in units are:

DDLT

(Units) P (DDLT)

6 .1

7 .3

8 .5

9 .1

a. Use payoff table to determine the order point.

b. Use marginal analysis to determine the order point.

c. Compute the safety stock.

Reference no: EM131234834

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