Question: Please answer the question with clear explanation. Given this information: Expected demand during lead time = 300 units Standard deviation of lead time demand =

Please answer the question with clear explanation. Please answer the question with clear
Given this information: Expected demand during lead time = 300 units Standard deviation of lead time demand = 30 units Determine each of the following, assuming that lead time demand is distributed normally a) The ROP that will provide a risk of stockout of 1 percent during lead time. b) The safety stock needed to attain a l percent risk of stockout during lead time. c) Would a stockout risk of 2 percent require more or less safety stock than a I percent risk? d) Would the ROP be larger, smaller, or unaffected if the acceptable risk were 2 percent instead of 1 percent? Explain

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