Question: Based on available information, lead time demand for PC jump drives averages 47 units (normally distributed), with a standard deviation of 6 drives. Management wants
Based on available information, lead time demand for PC jump drives averages 47 units (normally distributed), with a standard deviation of 6 drives. Management wants 98% service level. Refer to the standard normal table for z-values.
a) What value of Z should be applied? 2.06 1.28 1.04 1.65
b) How many drives should be carried as a safety stock?
c) What is the appropriate reorder point?
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