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Given the following information: Expected demand during a lead time = 5 3 0 kg Standard deviation of demand during a lead time = 4

Given the following information:
Expected demand during a lead time =530 kg
Standard deviation of demand during a lead time =45 kg
Demand during a lead time is distributed Normally Acceptable stockout risk during a lead time =4 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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