Given the following information:

Expected demand during a lead time $=420$ units

Standard deviation of demand during a lead time $=26$ units

Demand during a lead time is distributed Normally:

Refer: z$-$values.

a$.$ Determine the safety stock needed to attain a $2$ percent risk of stockout during a lead time. $($Round the final answer to the nearest whole number.$)$

Safety stock

units

b$.$ Would a stockout risk of $5$ percent require more or less safety stock?

$5\%$ stock out risk $->$

$($Click to select$)$

z $->$

$($Click to select$)$

SS