Question: Given this information: Expected demand during lead time = 5 0 0 units Standard deviation of lead time demand = 2 0 units Assuming that

Given this information:
Expected demand during lead time =500 units
Standard deviation of lead time demand =20 units
Assuming that lead time demand is distributed normally. The risk of stockout is 5 percent during lead time.
(a) What amount of safety stock is appropriate?
(b) Calculate ROP

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