Given this information:

Expected demand during lead time = 360 units

Standard deviation of lead time demand = 50 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.)

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.)

c-1. Would a stockout risk of 3 percent require more or less safety stock than a 1 percent risk? multiple choice 1

More

Less

c-2. Would the ROP be larger, smaller, or unaffected if the acceptable risk were 3 percent instead of 1 percent? multiple choice 2

Smaller

Larger

Unaffected