Question: Based on available information, lead time demand for PC jump drives averages 51 units (normally distributed), with a standard deviation of 5 drives. Management wants
Based on available information, lead time demand for PC jump drives averages 51 units (normally distributed), with a standard deviation of 5 drives. Management wants an 85% service level. Refer to the standard normal table for z-values.
a) What value of Z should be applied?
b) How many drives should be carried as safety stock? ____ units (round your response to the nearest whole number).
c) What is the appropriate reorder point? ____ units (round your response to the nearest whole number).
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
