Question: Given this information: Expected demand = 300 units/week Expected lead time = 2 weeks Standard deviation of demand = 25 units Standard deviation of lead

  1. Given this information:

Expected demand = 300 units/week

Expected lead time = 2 weeks

Standard deviation of demand = 25 units

Standard deviation of lead time = 1 week

Determine each of the following, assuming that the demand and lead time are normally distributed:

  1. The safety stock needed to attain a 5% risk of stockout.

  1. The reorder point that will provide a 1% risk of stockout.

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