Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Given this information: Lead - time demand = 6 2 5 pounds Standard deviation of lead time demand = 5 0 pounds ( Assume normality.

Given this information:
Lead-time demand =625 pounds
Standard deviation of lead time demand =50 pounds (Assume normality.)
Acceptable stockout risk during lead time =5 percent
Use Table.
a. What amount of safety stock is appropriate? (Round your answer to the nearest whole number.)
Safety stock ____ units
b. How much of this item should be reordered? (Round your answer to the nearest whole number.)
ROP ____ units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management

Authors: Chuck Williams

4th Edition

978-0324316797, 0324316798

More Books

Students also viewed these General Management questions