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Given this information: Expected demand during lead time=300 units Standard deviation of lead time demand= 30units Determine each of the following, assuming that lead time
Given this information: Expected demand during lead time=300 units Standard deviation of lead time demand= 30units Determine each of the following, assuming that lead time demand is distributed normally: a. the ROP that will provide a risk of stockout of 1 percent during lead time b. the safety stock needed to attain a 1 percent risk of stockout during lead time would a stockout risk of 2 percent require more or less safety than a 1 percent risk? Explain. Would the ROP be larger, smaller, or unaffected if the acceptable risk were 2 percent instead of 1 percent? explain
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