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1 9 . Given this information: Expected demand during lead time = 3 0 0 units Standard deviation of lead time demand = 3 0
Given this information: Expected demand during lead time units Standard deviation of lead time demand 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 percent during lead time. b The safety stock needed to attain a percent risk of stockout during lead time. c Would a stockout risk of percent require more or less safety stock than a l percent risk? Explain. Would the ROP be larger, smaller, or unaffected if the acceptable risk were percent instead of percent? Explain. a
Given this information: Expected demand during lead time units Standard deviation of lead time demand 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 percent during lead time. b The safety stock needed to attain a percent risk of stockout during lead time. c Would a stockout risk of percent require more or less safety stock than a l percent risk? Explain. Would the ROP be larger, smaller, or unaffected if the acceptable risk were percent instead of percent? Explain. a
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