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5. Freddie's Firestone is interested in establishing an inventory policy to ensure that orders are placed such that the risk of a stockout for a

image text in transcribed 5. Freddie's Firestone is interested in establishing an inventory policy to ensure that orders are placed such that the risk of a stockout for a popular tire is only 5%(z=1.645) for the upcoming year. An estimate of demand, demand variability, lead time and lead time variability has been calculated. Using the data in the table below, answer the proceeding questions. a. What quantity of units on hand will prompt an order? Units: b. What quantity of units are categorized as safety stock? Units

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