Question: Given this information: Lead - time demand = 6 0 0 pounds Standard deviation of lead time demand = 5 2 pounds ( Assume normality.

Given this information:
Lead
-
time demand
=
6
0
0
pounds
Standard deviation of lead time demand
=
5
2
pounds
(
Assume normality.
)
Acceptable stockout risk during lead time
=
4
percent
Use Table.
a
.
What amount of safety stock is appropriate?
(
Round your answer to the nearest whole number.
)
b
.
How much of this item should be reordered?
(
Round your answer to the nearest whole number.
)
c
.
What risk of stockout would result from a decision not to have any safety stock?

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