Question: Given the following information: Expected demand during a lead time = 680 kg Standard deviation of demand during a lead time = 70 kg Demand

Given the following information: Expected demand during a lead time = 680 kg Standard deviation of demand during a lead time = 70 kg Demand during a lead time is distributed Normally Acceptable stockout risk during a lead time = 2 percent Refer: z-values table.

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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