Question: Given the following information: Expected demand during a lead time = 6 0 0 k g Standard deviation of demand during a lead time =

Given the following information:
Expected demand during a lead time =600kg
Standard deviation of demand during a lead time =52kg
Demand during a lead time is distributed Normally.
Acceptable stockout risk during a lead time =4 percent
a. What amount of safety stock is appropriate?
b. At what level of inventory should this item be reordered?
Given the following information: Expected demand during a lead time =600kg

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