Question: Given the following information: Expected demand during a lead time = 600 kg Standard deviation of demand during a lead time = 56 kg Demand

Given the following information: Expected demand during a lead time = 600 kg Standard deviation of demand during a lead time = 56 kg Demand during a lead time is distributed Normally Acceptable stockout risk during a lead time = 5 percent Refer: z-values table. a. What amount of safety stock is appropriate? (Round the final answer to the nearest whole number.) Safety stock__________________kg? b. At what level of inventory should this item be reordered? ROP ______________kg?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!