Question: 1. Using the following information what is the appropriate level of safety stock for a 97.72% probability of being in stock during the order cycle

1. Using the following information what is the appropriate level of safety stock for a 97.72% probability of being in stock during the order cycle (2 std. devs)? What about a 99.87% probability (3 std devs)?

Average lead-time (replenishment cycle) in days = 12

standard deviation of lead-time = 2

Average daily demand = 145

Standard deviation of demand = 3

2. What is the ROP in units using the safety stock you calculated for 97.72%?

3. What is the ROP in units using the safety stock you calculate for 99.87%?

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