Question: Based on available information, lead time demand for PC jump drives averages 52 units (normally distributed), with a standard deviation of 4 drives. Management wants

Based on available information, lead time demand for PC jump drives averages 52 units (normally distributed), with a standard deviation of 4 drives. Management wants a 95% service level. Refer to the standard normal table for z-values.

Z

Pr(Z)

0.38

65

0.50

69

0.67

75

0.84

80

1.04

85

1.28

90

1.41

92

1.56

94

1.65

95

1.75

96

2.06

98

2.33

99

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).

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