Question: Problem 2: (10 Points) Given this information: - Expected demand during lead time =800 units - Standard deviation of lead time demand =40 units Assuming

 Problem 2: (10 Points) Given this information: - Expected demand during

Problem 2: (10 Points) Given this information: - Expected demand during lead time =800 units - Standard deviation of lead time demand =40 units Assuming that lead time demand is distributed normally. The risk of stockout is 5 percent during lead time. (a) What amount of safety stock is appropriate? (b) Calculate ROP

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