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Given the following information: Expected demand during a lead time = 680 kg Standard deviation of demand during a lead time = 70 kg Demand
Given the following information: Expected demand during a lead time = 680 kg Standard deviation of demand during a lead time = 70 kg Demand during a lead time is distributed Normally Acceptable stockout risk during a lead time = 2 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
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