Question: Based on available information, lead time demand for PC jump drives averages 53 units (normally distributed), with a standard deviation of 5 drives. Management wants

Based on available information, lead time demand for PC jump drives averages 53 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.

Based on available information, lead time demand

a) What value of Z should be applied?

1.65

1.28

2.06

1.04

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).

i Z-Table Z Pr(z) 65 69 75 80 0.38 0.50 0.67 0.84 1.04 1.28 1.41 1.56 1.65 1.75 2.06 2.33 85 90 92 94 95 96 98 99 Print Done

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