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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

19. 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 1 percent risk of stockout during lead time. c. Would a stockout risk of 2 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 2 percent instead of 1 percent? Explain. a

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