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1. What is the best description of safety capacity? 2. If throughput is 20 per hour and the capacity is 30 per hour, what is

1. What is the best description of safety capacity?

2. If throughput is 20 per hour and the capacity is 30 per hour, what is the utilization?

3.  What is the importance of safety capacity to a manager is primarily?

4. The demand each week is 30. The standard deviation in demand is 5. The lead time is 1 week. If z = 1.04 in the safety stock calculation, there is a cumulative probability of 0.8508 that the item will be in stock. What is the safety stock when z = 1.04?

5. The demand each week is 30. The standard deviation of demand is 5 a week. The lead time is 3 weeks. z = 1.65 in the safety stock calculation, What is the reorder point?

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