Question: Given the following information: Expected demand during a lead time =620kg Standard deviation of demand during a lead time =60kg Demand during a lead time


Given the following information: Expected demand during a lead time =620kg Standard deviation of demand during a lead time =60kg Demand during a lead time is distributed Normally Acceptable stockout risk during a lead time =1 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 Table 11-4 Lead time service levels and standardized expected numbers short during an order cycle for Normal distribution
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