Question: Given this information: Lead-time demand = 555 pounds Standard deviation of lead time demand = 36 pounds (Assume normality.) Acceptable stockout risk during lead time

Given this information:

Lead-time demand = 555 pounds

Standard deviation of lead time demand = 36 pounds (Assume normality.)

Acceptable stockout risk during lead time = 2 percent

Use Table below:

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

c. What risk of stockout would result from a decision not to have any safety stock?

Stockout Risk:__%

Given this information: Lead-time demand = 555

0 Z .00 .01 .02 .03 .04 .05 .06 .07 .08 .09 .1 .2 .3 4 AWNO .5000 .5398 .5793 .6179 .6554 .5040 .5438 .5832 .6217 .6591 .5080 .5478 .5871 .6255 .6628 .5120 .5517 .5910 .6293 .6664 .5160 .5557 .5948 .6331 .6700 .5199 5596 .5987 .6368 .6736 .5239 5636 .6026 .6406 .6772 5279 .5675 .6064 .6443 .6808 .5319 .5714 .6103 6480 .6844 .5359 .5753 .6141 .6517 .6879 .5 56780 .7 .8 .9 .6915 .7257 .7580 .7881 .8159 .6950 7291 .7611 .7910 .8186 .6985 .7324 .7642 .7939 .8212 .7019 7357 .7673 .7967 .8238 .7054 .7389 .7703 .7995 .8264 7088 .7422 .7734 .8023 .8289 .7123 .7454 .7764 8051 .8315 .7157 .7486 .7794 .8078 .8340 .7190 .7517 .7823 .8106 .8365 7224 .7549 .7852 .8133 .8389 1.0 1.1 1.2 1.3 1.4 .8413 .8643 .8849 .9032 .9192 .8438 .8665 .8869 .9049 .9207 .8461 .8686 .8888 .9066 .9222 .8485 .8708 .8907 .9082 .9236 .8508 .8729 .8925 9099 9251 .8531 .8749 .8944 .9115 .9265 .8554 .8770 .8962 .9131 9279 .8577 .8790 .8980 .9147 .9292 .8599 .8810 .8997 .9162 .9306 .8621 .8830 9015 .9177 .9319 1.5 1.6 1.7 1.8 1.9 .9332 .9452 .9554 .9641 .9713 9345 .9463 .9564 .9649 9719 .9357 .9474 .9573 .9656 .9726 .9370 .9484 .9582 .9664 .9732 9382 .9495 .9591 .9671 .9738 .9394 .9505 .9599 .9678 .9744 .9406 .9515 .9608 .9686 .9750 .9418 .9525 .9616 .9693 .9756 9429 .9535 .9625 .9699 .9761 .9441 .9545 9633 9706 .9767 2.1 2.2 2.3 2.4 .9772 .9821 9861 .9893 .9918 9778 .9826 .9864 .9896 .9920 .9783 .9830 .9868 .9898 .9922 9788 .9834 .9871 .9901 .9925 .9793 .9838 .9875 .9904 .9927 .9798 .9842 .9878 .9906 .9929 .9803 .9846 9881 .9909 .9931 .9808 .9850 .9884 .9911 .9932 .9812 .9854 .9887 .9913 .9934 .9817 .9857 9890 .9916 .9936 2.6 .9938 .9953 .9965 .9974 .9981 .9940 .9955 .9966 .9975 .9982 .9941 .9956 .9967 .9976 .9982 .9943 .9957 .9968 .9977 .9983 .9945 .9959 .9969 .9977 .9984 .9946 .9960 .9970 .9978 .9984 .9948 .9961 .9971 .9979 9985 -9949 .9962 .9972 .9979 .9985 .9951 .9963 .9973 .9980 .9986 .9952 9964 .9974 .9981 .9986 3.0 3.1 3.2 3.3 3.4 .9987 .9990 .9993 .9995 .9997 .9987 .9991 .9993 .9995 .9997 .9987 .9991 9994 .9995 .9997 .9988 .9991 .9994 .9996 .9997 .9988 .9992 .9994 .9996 9997 .9989 .9992 .9994 .9996 .9997 9989 .9992 .9994 .9996 .9997 .9989 .9992 .9995 .9996 .9997 .9990 .9993 .9995 .9996 .9997 .9990 .9993 .9995 .9997 .9998 1. }

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