Question: Given this information: Expected demand during lead time = 2 8 0 units Standard deviation of lead time demand = 1 6 units Use Table.

Given this information:
Expected demand during lead time =280 units
Standard deviation of lead time demand =16 units
Use Table.
Determine each of the following. assuming that lead time demand is distributed normally:
a. The ROP that will provide a risk of stockout of 1 percent during lead time. (Round your onswer to the nearest whole number.)
ROP
ts
b. The safety stock needed to attain a 1 percent risk of stockout during lead time. (Do not round Intermedlate celculatlons. Round your answer to the nearest whole number.)
Safety stock
units
 Given this information: Expected demand during lead time =280 units Standard

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!