Suppose that the manager of a construction supply house determined from historical records that demand for sand averages 49 tons. In addition, suppose the manager determined that demand during lead time could be described by a normal distribution that has a mean of 49 and a standard deviation of 6 tons. Answer the following questions assuming that the manager is willing to accept a stockout risk of no more than 3 percent.

1. What value of z is appropriate?

2. How much safety stock should be held?

3. What reorder point should be used?