Question: Based on available information, lead time demand for PC jump drives averages 47 units (normally distributed), with a standard deviation of 5 drives. Management wants
Based on available information, lead time demand for PC jump drives averages 47 units (normally distributed), with a standard deviation of 5 drives. Management wants a 98% service level. Refer to the standard normal table for z-values.
a) What value of Z should be applied?
1.04
1.28
2.06
1.65
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)
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