Given this information:

Lead-time demand = 620 pounds

Standard deviation of lead time demand = 70 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.)

Safety stock

units

b.	When should this item 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? (Omit the "%" sign in your response.)

Stockout risk

%

Z Z 1.00 .01 102 1.03 104 1.05 1.06 07 1.08 1.09 0 l 5000 1.5398 15793 16179 16554 15040 15438 15832 16217 16591 15080 15478 15871 6255 .6628 5120 1.5517 1.5910 .6293 .6664 15160 1.5557 15948 16331 16700 15199 15596 5987 6368 1.6736 1.523 1.5636 16026 16406 6772 5279 1.5675 16064 46443 16808 5319 15714 6103 .6480 16844 1.5359 1.5753 6141 16517 6879 3 4 15 6 17 8 9 .6915 7257 7580 1.7881 8159 6950 7291 7611 1.7910 1.8186 16985 17324 17642 17939 1.8212 1.7019 7357 1.7673 7967 1.8238 17054 17389 7703 17995 1.8264 17088 7422 17734 8023 18289 17123 17454 17764 8051 18315 7157 7486 7794 18078 1.8340 17190 7517 17823 8106 1.8365 7224 17549 17852 8133 18389 1.0 11 1.2 13 1.4 18413 18643 1.8849 19032 19192 18438 18665 8869 19049 19207 18461 18686 8888 19066 9222 1.8485 1.8708 18907 19082 19236 18508 1.8729 18925 19099 19251 1.8531 18749 8944 19115 19265 18554 18770 1.8962 9131 19279 1.8577 18790 .8980 19147 19292 1.8599 1.8810 8997 9162 19306 18621 18830 19015 9177 19319 1.5 1.6 17 1.8 1.9 19332 19452 19554 19641 19713 19345 1.9463 19564 19649 19719 19357 19474 19573 19656 19726 19370 19484 19582 19664 19732 19382 19495 19591 19671 19738 19394 19505 19599 19678 19744 19406 19515 1.9608 1.9686 19750 19418 19525 19616 19693 9756 19429 19535 19625 1.9699 1.9761 19441 19545 19633 19706 19767 20 21 22 2.3 2.4 19772 1.9821 19861 19893 19918 19778 19826 19864 19896 1920 9783 19830 19868 19898 19922 1978 1.9834 19871 19901 19925 19793 19838 19875 19904 19927 19798 19842 19878 19906 19929 1.9803 19846 19881 19909 19931 19808 19850 19884 19911 19932 19812 19854 19887 19913 19934 19817 19857 19890 19916 19936 2.5 26 2.7 2.8 29 19938 19953 19965 19974 1.9981 19940 19955 19966 19975 19982 19941 19956 19967 19976 19982 9943 19957 19968 19977 1.9983 19945 19959 19969 19977 19984 19946 19960 19970 19978 19984 1.9948 19961 1.9971 19979 19985 19949 19962 19972 19979 19985 19951 19963 19973 19980 19986 19952 19964 19974 19981 19986 3.0 31 3.2 3.3 3.4 1.9987 19990 19993 19995 1.9997 19987 1991 19993 19995 19997 19987 1991 19994 19995 19997 19988 19991 1.9994 19996 1.9997 19988 19992 19994 19996 19997 19989 19992 19994 19996 19997 1.9989 19992 19994 19996 19997 19989 19992 19995 19996 19997 19990 19993 19995 19996 19997 19990 19993 19995 19997 19998