To answer this question you will need to use the table below... Inventory item Q is an item for which demand fluctuates around a constant mean. Daily demand is normally distributed averages 100 units and has a standard deviation of 80 units. Lead time for Q is equal to 2 days. If we have decided that an acceptable probability of a stockout for Q is 0.0228, what should the reorder point for Q be? (Round to 2 decimal places) Z G(Z) z G(Z) z G(Z) Z G(Z) 0.25 0.5987 0.75 0.7734 1.25 0.8944 1.75 0.9599 0.30 0.6179 0.80 0.7881 1.30 0.9032 1.80 0.9641 0.35 0.6368 0.85 0.8023 1.35 0.9115 1.85 0.9678 0.40 0.6554 0.90 0.8159 1.40 1.90 0.9713 0.9192 0.9265 0.45 0.6736 0.95 0.8289 1.45 1.95 0.9744 0.50 0.6915 1.00 0.8413 1.50 2.00 0.9772 0.9332 0.9394 0.55 0.7088 1.05 0.8531 1.55 2.05 0.9798 0.60 0.7257 1.10 0.8643 1.60 0.9452 2.10 0.9821 0.65 0.7422 1.15 0.8749 1.65 0.9505 2.15 0.9842 0.70 0.7580 1.20 0.8849 1.70 0.9554 2.20 0.9861 To answer this question you will need to use the table below.. Suppose we have decided that an acceptable risk of a stockout for Inventory item Delta is 5.48%. Demand for Delta is normally distributed, with a mean equal to 600 units and a standard deviation equal to 60 units. Until very recently, lead time for Delta was equal to 3 days, but our vendor has now told us that lead time for Delta will be increasing by 2 days. How much more safety stock will we need to carry? (Round to 2 decimal places) s z G(Z) z G(Z) Z Z G(Z) 0.8944 0.25 G(Z) 0.9599 0.5987 0.75 0.7734 1.25 1.75 0.30 0.6179 0.80 0.7881 1.30 0.9032 1.80 0.9641 0.35 0.6368 0.85 0.8023 1.35 0.9115 1.85 0.9678 0.40 0.6554 0.90 0.8159 1.40 0.9192 1.90 0.9713 0.45 0.6736 0.95 0.8289 1.45 0.9265 1.95 0.9744 0.50 0.6915 1.00 0.8413 1.50 0.9332 2.00 0.9772 0.55 0.7088 1.05 0.8531 1.55 0.9394 2.05 0.9798 0.60 0.7257 1.10 0.8643 1.60 0.9452 2.10 0.9821 0.65 0.7422 1.15 0,8749 1.65 0.9505 2.15 0.9842 0.70 0.7580 1.20 0.8849 1.70 0.9554 2.20 0.9861 To answer this question you will need to use the table below... We manage a particular inventory item with a Periodic Review system. We review our inventory position every 17 days. Lead time for this item is equal to 4 days. Daily demand for this item is normally distributed with a mean of 60 and a standard deviation of 7 units. We have determined that a 9.68% risk of a stockout is acceptable. If it is time to order this item, and our current on-hand inventory is 381 units, how many units should we order? (Round to 2 decimal places) z G(Z) Z G(Z) G(Z) Z G(Z) 0.5987 0.75 0.7734 1.25 0.8944 1.75 0.9599 15 Z 0.25 0.30 0.6179 0.80 0.7881 1.30 0.9032 1.80 0.9641 0.35 0.6368 0.85 0.8023 1.35 0.9115 1.85 0.9678 0.40 0.6554 0.90 0.8159 1.40 0.9192 1.90 0.9713 0.45 0.6736 0.95 0.8289 1.45 0.9265 1.95 0.9744 0.50 0.6915 1.00 0.8413 1.50 0.9332 2.00 0.9772 0.55 0.7088 1.05 0.8531 1.55 0.9394 2.05 0.9798 0.60 0.7257 1.10 0.8643 1.60 0.9452 2.10 0.9821 0.65 0.7422 1.15 0.8749 1.65 0.9505 2.15 0.9842 0.70 0.7580 1.20 0.8849 1.70 0.9554 2.20 0.9861