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Suppose that the manager of a construction supply house determined from historical records that demand for sand averages 4 7 tons. In addition, suppose the

Suppose that the manager of a construction supply house determined from historical records that demand for sand averages 47 tons. In addition, suppose the manager determined that demand during lead time could be described by a normal distribution that has a mean of 47 and a standard deviation of 3 tons. Answer the following questions assuming that the manager is willing to accept a stockout risk of no more than 3 percent. Use Table B.2
(Round your answer to two decimal points.)
a. What value of z is appropriate?
Z-Value
b. How much safety stock should be held? (Round your answer to two decimal points.)
Safety Stock
c. What reorder point should be used? (Round your answer to two decimal points.)
Reorder Point
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