Question: Based on available information, lead time demand for PC thumb drives averages 48 units (normally distributed), with a standard deviation of 5 drives. Management wants

Based on available information, lead time demand for PC thumb drives averages 48 units (normally distributed), with a standard deviation of 5 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

Part 2

a) What value of Z should be applied?

Part 3

b) How many drives should be carried as safety stock?

units (round your response to the nearest whole number).

Part 4

c) What is the appropriate reorder point?

units (round your response to the nearest whole number).

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