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r1 : 5-313 After analyzing the costs ef various options for ob taining hraeltels, Rosa White {see Problems 6'1? through 6-29} recognizes that although he
r1 : 5-313 After analyzing the costs ef various options for ob taining hraeltels, Rosa White {see Problems 6'1? through 6-29} recognizes that although he knows that the lead time is 2 days and the demand per day averages ll] units, the demand during the lead time often varies. Ross has kept very candid records and has determined that lead time demand is nominally disn'ihuted with a standard deation of 1.5 units. {a} What 2 value would be appropriate for a 93% aervioe level'iI {b} What safety steel: should Russ maintain if he wants. a 93% service level? {a} What is the adjusted RDP fer the bmelteta'? {d} What is the annual holding cost. for the safety stock if the annual holding cost per unit is $15!)
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