Question: Given the following information: Expected demand during a lead time = 600 kg. Standard deviation of demand during a lead time = 52 kg and

Given the following information: Expected demand

Given the following information: Expected demand during a lead time = 600 kg. Standard deviation of demand during a lead time = 52 kg and Demand during a lead time is distributed Normally. Acceptable stock-out 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 re-ordered

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