Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Based on available information, lead time demand for PC jump drives averages 49 units (normally distributed), with a standard deviation of 6 drives. Management wants
Based on available information, lead time demand for PC jump drives averages 49 units (normally distributed), with a standard deviation of 6 drives. Management wants a 98% 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). \begin{tabular}{|c|c|} \hline Z & Pr(Z) \\ \hline 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 \\ \hline \end{tabular}
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started