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?
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