ch 12.2

Given this information: Expected demand during lead time = 350 units Standard deviation of lead time demand = 46 units Use Table Determine each of the following, assuming that lead time demand is distributed normally: a. The ROP that will provide a risk of stockout of 1 percent during lead time. (Round your answer to the nearest whole numbe ROP units b. The safety stock needed to attain a 1 percent risk of stockout during lead time. (Do not round intermediate calculations. Round your answer to the nearest whole number.) Safety stock units C-1. Would a stockout risk of 3 percent require more or less safety stock than a 1 percent risk? Less OMore C-2. Would the ROP be larger smaller or unaffected if the acceptable risk were 3 percent instead of 1 percent? Unaffected Smaller Larger