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

Given the following information:
Expected demand during a lead time =340 units
Standard deviation of demand during a lead time =45 units
Demand during a lead time is distributed Normally:
Refer: z-values.
a. Determine the safety stock needed to attain a 5 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 10 percent require more or less safety stock?
10% stock out risk -> z -> SS

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