Question: Average lead time is 20 days with a standard deviation of 5 days. Daily demand is 50 units. The inventory manager wants to operate within

Average lead time is 20 days with a standard deviation of 5 days. Daily demand is 50 units. The inventory manager wants to operate within 3 standard deviations. Find safety stock and reorder point.

ROP=1,750, SS = 1000

ROP = 750, SS=1,000

ROP=1,750, SS=750

ROP=1,000, SS=750

Find service level ( S L ) and stock-out probability ( P [ S t o c k o u t ] ) for z = 1.50.

SL=93.32%, stock-out prob.=6.68%

SL=90%, stock-ou prob.=10%

Given information is not sufficent to answer this question

SL=6.68%, stock-out prob,=93.32%

A retailer orders sunscreens from Sweden. The firm wants to make a single purchase. Unit cost ( v ) is $12 and sales price ( r ) is $24. Unsold sunscreens will be salvaged ( s ) at $8 each at the end of the summer. The management estimates that there is no significant goodwill cost ( g = 0 ) for lost sales. Find critical ratio ( R ).

Group of answer choices

0.25

0.75

0.33

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