Question: O 3. Given: a) Expected demand during lead time = 50 units b) Standard deviation of demand during lead time = 10 units Determine Each

O 3. Given: a) Expected demand during lead time = 50 units b) Standard deviation of demand during lead time = 10 units Determine Each of the following: a. The safety stock needed to attain a 10 percent risk of stockout during lead time b. The ROP that will provide a risk of stockout of 10 percent during lead time. C. Would a stockout risk of 5 percent require more or less safety stock than a 10 percent risk? Explain d. Would the ROP be larger, smaller, or unchanged if the acceptable risk were 20 percent rather than 10 percent. Explain

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