Question: Based on available information, lead time demand for PC jump drives averages 50 units (normally distributed), with a standard deviation of 5 drives. Management wants
Based on available information, lead time demand for PC jump drives averages 50 units (normally distributed), with a standard deviation of 5 drives. Management wants a 98% service level.
a) What value of Z should be applied?
b) How many drives should be carried as safety stock?
c) What is the appropriate reorder point?
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