Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Given the following information: Expected demand during a lead time = 600 kg Standard deviation of demand during a lead time = 56 kg Demand

Given the following information: Expected demand during a lead time = 600 kg Standard deviation of demand during a lead time = 56 kg Demand during a lead time is distributed Normally Acceptable stockout risk during a lead time = 5 percent Refer: z-values table. a. What amount of safety stock is appropriate? (Round the final answer to the nearest whole number.) Safety stock__________________kg? b. At what level of inventory should this item be reordered? ROP ______________kg?

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

Management Process

Authors: Lee Long

4th Edition

978-0201822939,0201822938

More Books

Students also viewed these General Management questions

Question

Factor 49x^(2)-25 Question Help: Video Submit

Answered: 1 week ago

Question

What is American Polity and Governance ?

Answered: 1 week ago

Question

What is Constitution, Political System and Public Policy? In India

Answered: 1 week ago

Question

(LO 3-3) How might the data reduction approach be used in auditing?

Answered: 1 week ago