Question: Given this information: Expected demand during lead time = 350 units Standard deviation of lead time demand = 16 units Use Table. Determine each of
Given this information: Expected demand during lead time = 350 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 5 percent during lead time. (Round your answer to the nearest whole number.) ROP ________ units b. The safety stock needed to attain a 5 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 5 percent risk?
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Less
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More
c-2. Would the ROP be larger, smaller, or unaffected if the acceptable risk were 2 percent instead of 5 percent?
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Smaller
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Unaffected
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Larger
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