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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