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Given this information: Lead-time demand = 560 pounds The standard deviation of lead time demand = 37 pounds (Assume normality.) Acceptable stockout risk during lead
Given this information:
Lead-time demand = 560 pounds
The standard deviation of lead time demand = 37 pounds (Assume normality.)
Acceptable stockout risk during lead time = 3 percent
Use Table.
- What amount of safety stock is appropriate? (Round your answer to the nearest whole number.)
Safety stock _______units
- How much of this item should be reordered? (Round your answer to the nearest whole number.)
Rop ________units
- What risk of stockout would result from a decision not to have any safety stock? (Omit the "%" sign in your response.)
Stockout risk ________%
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