Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Based on available information, lead time demand for PC jump drives averages 48 units (normally distributed), with a standard deviation of 5 drives. Management wants

image text in transcribedimage text in transcribed
image text in transcribedimage text in transcribed
Based on available information, lead time demand for PC jump drives averages 48 units (normally distributed), with a standard deviation of 5 drives. Management wants a 95% service level. Refer to the standard normal table for z-values. a) What value of Z should be applied? b) How many drives should be carried as safety stock? |units (round your response to the nearest whole number). c) What is the appropriate reorder point? |units (round your response to the nearest whole number).Z-Table Z Pr(Z) 0.38 65 0.50 69 0.67 75 0.84 80 1.04 85 1.28 90 1.41 92 1.56 94 1.65 95 1.75 96 2.06 98 2.33 99

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones of Managerial Accounting

Authors: Maryanne Mowen, Don Hanson, Dan Heitger, David McConomy, Bradley Witt, Jeffrey Pittman

3rd Canadian edition

176530886, 176721231, 978-0176721237

More Books

Students also viewed these Accounting questions