Given this information:

Expected demand during lead time = 330 units

Standard deviation of lead time demand = 40 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 answer to the nearest whole number.)

ROP

units

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.)

Safety stock

units

c-1.

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

	More
	Less

c-2.

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

	Smaller
	Unaffected
	Larger

| Z Z .00 .01 1.02 1.03 104 1.05 1.06 1.07 108 1.09 0 1 12 3 4 5000 5398 5793 15179 16554 15040 15438 15832 16217 16591 15080 15478 15871 16255 6628 5120 5517 1.5910 1.6293 1.6664 15160 15557 5948 6231 6700 5199 15596 15987 6368 6736 15239 1.5636 .6026 46406 16772 5279 5675 16064 .6443 16808 5319 15714 16103 6480 1.6844 15359 5753 6141 16517 .6879 5 6 7 16915 7257 17580 17881 18159 6950 17291 1.7611 1.7910 18186 16985 17324 7642 17939 1.8212 1.7019 7357 1.7673 7967 1.8238 17054 17389 7703 7995 18264 17088 7422 17734 8023 8289 17123 1.7454 1.7764 1.8051 1.8315 1.7157 7486 7794 .8078 18340 17190 1.1517 1.7823 8106 1.8365 17224 7549 17852 8133 18389 8 9 1.0 11 12 13 1.4 18413 .8643 18849 19032 19192 18438 18665 8869 19049 19207 18461 18686 8888 19066 19222 1.8485 18708 1.8907 19082 1.9236 1.8508 18729 18925 19099 19251 1.8531 8749 18944 1.9115 19265 1.8554 18770 18962 9131 19279 18577 .8790 1.8980 19147 19292 8599 18810 1.8997 19162 19306 18621 18830 9015 19177 19319 15 1.6 17 1.8 1.9 19332 19452 19554 19641 19713 19345 19463 19564 19649 9719 19357 9474 19573 19656 9726 19370 1.9484 1.9582 19664 19732 19382 19495 19591 19671 19738 1.9394 19505 19599 19678 19744 19406 19515 1.9608 19686 19750 19418 19525 19616 1.9693 19756 19429 19535 1.9625 19699 19761 9441 19545 1963 19706 19767 20 2.1 22 2.3 2.4 19772 1.9821 19861 19893 9918 19778 19826 19864 19896 19920 19783 19830 19868 19898 19922 19788 19834 1.9871 19901 19925 19793 19838 19875 19904 19927 19798 19842 19878 19906 19929 19803 19846 19881 19909 19931 19808 19850 19884 19911 19932 19812 19854 19887 19913 19934 19817 19857 19890 19916 9996 25 2.6 2.7 2.8 2.9 19938 9953 19965 19974 19981 19940 19955 19966 19975 19982 19941 19956 19967 19976 19982 1.9943 1.9957 19968 1.9977 1.9983 19945 19959 19969 19977 19984 19946 19960 1.970 19978 19984 19948 19961 19971 19979 19985 19949 19962 19972 19979 19985 19951 19963 19973 1.9980 19986 19952 19964 19974 9981 19986 3.0 3.1 3.2 3.3 3.4 19987 19990 19993 19995 1.9997 19987 19991 19993 19995 9997 19987 19991 19994 19995 19997 19988 1.9991 19994 19996 19997 1.9988 19992 19994 19996 19989 19992 19994 19996 19997 19989 19992 19994 19996 19989 19992 9995 19996 1.9990 19993 19995 19996 19997 19990 19993 19995 19997 19998 19997 9997 9997