Given the following information:
Expected demand during a lead time = 300 units
Standard deviation of demand during a lead time= 30 units
Demand during a lead time is distributed Normally:
a. Determine the safety stock needed to attain a 1 percent risk of stock-out during a lead time.
b. Would a stock-out risk of 2 percent require more or less safety stock than a 1 percent risk? Explain.