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3. Based on available information, lead-time demand for PC jump drives averages 50 units (normally distributed), with a standard deviation of 5 drives. Management wants

3. Based on available information, lead-time demand for PC jump drives averages 50 units (normally distributed), with a standard deviation of 5 drives. Management wants a 97% service level. Assume the standard deviation and lead time use the same units.

a. What value of Z should be applied?

b. How many drives should be carried as safety stock?

c. What is the appropriate reorder point?

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