Question: A warehouse stocks three different items: SKU A, SKU B, and SKU C. Information on each of these items are provided in the table: SKU

A warehouse stocks three different items: SKU A, SKU B, and SKU C. Information on each of these items are provided in the table: SKU A Daily Demand Constant at 30 units per day Lead Time Normally distributed with an average of 9 days and a standard deviation of 2 days Constant at 4 days B Normally distributed with an average of 36 units per day and a standard deviation of 9 units Normally distributed with an average of 36 units per day and a standard deviation of 4 units Normally distributed with an average of 4 days and a standard deviation of 2 days The company wants to maintain the stock out the chance of 1.39%. 1. How much safety stock needs to hold to meet the predetermined stock out chance. (6 points) SKU A: SKU B: SKU C: 2. What is the reorder point to meet the predetermined stock out chance? (4 points) SKU A: SKU B: SKU C

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