Given the following information: Expected demand during a lead time = 660 kg Standard deviation of...
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Given the following information: Expected demand during a lead time = 660 kg Standard deviation of demand during a lead time = 66 kg Demand during a lead time is distributed Normally Acceptable stockout risk during a lead time = 5 percent 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 Given the following information: Expected demand during a lead time = 660 kg Standard deviation of demand during a lead time = 66 kg Demand during a lead time is distributed Normally Acceptable stockout risk during a lead time = 5 percent 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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a To calculate the amount of safety stock we need to determine the zscore corresponding to the accep... View the full answer
Related Book For
Quantitative Methods for Business
ISBN: 978-0840062345
12th edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam
Posted Date:
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