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 units
Standard deviation of lead time demand 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 percent during lead time.
Note: Round your answer to the nearest whole number.
b The safety stock needed to attain a percent risk of stockout during lead time.
Note: Do not round intermediate calculations. Round your answer to the nearest whole number.
c Would a stockout risk of percent require more or less safety stock than a percent risk?
multiple choice
More
Less
c Would the ROP be larger, smaller, or unaffected if the acceptable risk were percent instead of percent?
multiple choice
Larger
Unaffected
Smaller
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
