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

Given this information:
Lead-time demand =625 pounds
Standard deviation of lead time demand =50 pounds (Assume normality.)
Acceptable stockout risk during lead time =5 percent
Use Table.
a. What amount of safety stock is appropriate? (Round your answer to the nearest whole number.)
Safety stock ____ units
b. How much of this item should be reordered? (Round your answer to the nearest whole number.)
ROP ____ units

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!