Question: Given the following information: Expected demand during a lead time = 560 kg Standard deviation of demand during a lead time = 50 kg Demand

Given the following information:

Expected demand during a lead time = 560 kg

Standard deviation of demand during a lead time = 50 kg

Demand during a lead time is distributed Normally Acceptable stockout risk during a lead time = 1 percent

Refer:z-valuestable.

a.What amount of safety stock is appropriate?(Round the final answer to the nearest whole number.)

Safety stockkg

b.At what level of inventory should this item be reordered?

ROPkg

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!