Given this information:

Expected demand during lead time $=290$ units

Standard deviation of lead time demand $=20$ units

Use Table.

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

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a$.$ The ROP that will provide a risk of stockout of $1$ percent during lead time. $($Round your answer to the nearest whole number.$)$

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b$.$ The safety stock needed to attain a $1$ percent risk of stockout during lead time. $($Do not round intermediate calculations. Round your answer to the nearest whole number.$)$

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c$-1.$ Would a stockout risk of $2$ percent require more or less safety stock than a $1$ percent risk?

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multiple choice $1$

More

Less

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c$-2.$ Would the ROP be larger, smaller, or unaffected if the acceptable risk were $2$ percent instead of $1$ percent?

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multiple choice $2$

Larger

Unaffected

Smaller

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