Question: Demand for a given inventory item averages 15 units per week with a standard deviation of 5 units. Lead time for this item is 9

Demand for a given inventory item averages 15 units per week with a standard deviation of 5 units. Lead time for this item is 9 weeks. If we are using a reorder point of 159.68 units, what is our risk of a stockout? (Round to 2 decimal places and just report the number ... if your answer is 2.3% then simply report 2.3.) We use a Periodic Review system to manage an inventory item for which demand averages 30 units a week with a standard deviation of 11 units. Lead time for this item is 2 units and our order interval is 9 weeks. Our policy is to manage our inventory such that we run not more than a 2.5% risk of a stockout Suppose we are about to place an order for this item and have determined that our on-hand inventory is 300 units. What should our order quantity be? (Round to 2 decimal places and report only the number.)

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