Question: Given the following information: Expected demand during a lead time = 270 units Standard deviation of demand during a lead time = 25 units Demand

Given the following information: Expected demand during a lead time = 270 units Standard deviation of demand during a lead time = 25 units Demand during a lead time is distributed Normally: Refer: z-values.

a. Determine the safety stock needed to attain a 2 percent risk of stockout during a lead time. (Round the final answer to the nearest whole number.)

Safety stock = ? units

b. Would a stockout risk of 5 percent require more or less safety stock?

5% stock out risk Larger/Smaller z more/less SS

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