Question: Given the following information: Lead - time demand = 6 0 0 pounds Standard deviation of lead time demand = 5 2 pounds ( assume

Given the following information:
Lead-time demand =600 pounds
Standard deviation of lead time demand =52 pounds (assume normality)
Acceptable stockout during lead time =4 percent
a. What amount of safety stock is appropriate?
b. When should this item be reordered
c. What risk of stockout would result from a decision not to have any safety stock?

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