Question: xGiven this information: Lead - time demand = 6 2 0 pounds Standard deviation of lead time demand = 4 9 pounds ( Assume normality.

xGiven this information:
Lead-time demand =620 pounds
Standard deviation of lead time demand =49 pounds (Assume normality.)
Acceptable stockout risk during lead time =5 percent
Use Table.
a. What amount of safety stock is appropriate? (Round your answer to the nearest whole number.)
Safety stock
units
b. How much of this item should 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
%\

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!