Question: Given this information: Lead-time demand = 625 pounds Standard deviation of lead time demand = 50 pounds (Assume normality.) Acceptable stockout risk during lead time
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 c. What risk of stockout would result from a decision not to have any safety stock? (Omit the "%" sign in your response.) Stockout risk ____%
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
