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Given this information: Lead-time demand = 610 pounds Standard deviation of lead time demand = 70 pounds (Assume normality.) Acceptable stockout risk during lead time
Given this information: |
Lead-time demand = 610 pounds |
Standard deviation of lead time demand = 70 pounds (Assume normality.) |
Acceptable stockout risk during lead time = 4 percent |
Use Table. |
a. | What amount of safety stock is appropriate? (Round your answer to the nearest whole number.) |
Safety stock | units |
b. | When should this item be reordered? (Round your answer to the nearest whole number.) |
ROP | units |
c. | 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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