Question: Given this information: Lead-time demand = 640 pounds Standard deviation of lead time demand = 80 pounds (Assume normality.) Acceptable stockout risk during lead time

Given this information:

Lead-time demand = 640 pounds

Standard deviation of lead time demand = 80 pounds (Assume normality.)

Acceptable stockout risk during lead time = 4 percent

Use Table.

Given this information: Lead-time demand = 640

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

| 2.00 1.01 1.02 1.03 104 1.05 106 1.07 1.08 .09 1.0 1.1 12 3 4 5000 5398 5793 16179 1.6554 1.5040 1.5438 15832 16217 16591 15080 15478 15871 .6255 16628 5120 1.5517 5910 16293 .6664 15160 15557 15948 6331 6700 1.5199 1.5596 15987 6368 1.6736 15239 15636 .6026 1.6406 1.6772 5279 1.5675 .6064 16443 1.6808 5359 15753 6141 16517 16879 15319 5714 6103 16480 6844 1.7190 17517 17823 8106 1.8365 5 6 7 8 19 .6915 7257 17560 1.7881 18159 6950 7291 1.7611 1.7910 6985 17324 17642 179399 48212 1.7019 7357 1.7673 1.7967 1.8238 1.7088 1.7422 1.7734 1.8023 1.8289 17123 1.1454 1.7764 1.8051 18315 7157 17486 7794 1.8078 1.8340 17224 1.7549 1.7852 1.8133 18389 1.8186 1.7054 17389 1.7703 1.7995 8264 1.8508 8729 18925 909 19251 1.0 1.1 12 13 14 8413 8643 28849 19082 9192 1.8438 18665 18869 19049 19207 1.8461 1.868 1.8888 19066 1.9222 18485 18708 1.8907 1.9082 1.9236 1.8531 1.8749 18944 1915 1.9265 1.8554 18770 1.8962 9131 1.9279 1.8577 1.8790 18980 9147 49292 1.8599 810 1.8997 19162 19306 1.8621 18830 19015 1917 19319 1.5 1.6 1.7 1.8 1.9 19332 1.9452 1.9554 19641 9713 19345 19463 19564 1.9649 19719 19357 19474 19573 1.9656 19726 19370 1.9484 19582 19664 9732 19382 19495 1.9591 19671 19738 19394 1.9505 1.9599 1.9678 1.9744 19406 19515 19608 1.9686 19750 1.9418 1.9525 1.9616 1.9693 9756 19429 19535 19625 19699 19761 19441 19545 19633 1.9706 19767 2.0 2.1 2.2 2.3 2.4 19772 19821 19861 19893 19918 19778 19826 1.9864 19896 19920 19783 19830 19868 19898 19922 9788 1.9834 19871 19901 19925 19793 19838 19875 19904 9927 19798 19842 19878 19906 19929 19803 19846 19881 1.9909 19808 9650 19884 19911 19932 19812 19954 19887 9913 19934 19817 19857 19990 19916 19936 19931 1.1940 25 2.6 27 2.8 2.9 998 19953 1.9965 19974 9981 1995 1.9966 19975 19982 19941 19956 19967 19976 19982 19943 19957 19968 1.9977 1.9983 19945 19959 19969 19977 19984 19946 1960 19970 19978 19984 19948 19961 19971 19979 19985 19949 19962 19972 1.9979 19965 19951 19963 19973 19980 19966 19952 19964 19974 19981 19986 19988 3.0 3.1 3.2 3.3 3.4 19987 9990 19993 19995 19997 19987 19991 19993 19995 19997 1.9987 1999] 19994 19995 19997 9991 19994 1.9996 19997 19988 19992 19994 19996 19997 1989 1992 1.9994 19996 19997 19989 1.9992 19994 19996 1.9997 19969 1.9992 1995 19996 19997 19990 19993 19995 19996 19997 19990 19993 19995 19997 19998

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