Suppose that the manager of a construction supply house determined from historical records that demand for sand during the lead time averages 50 tons. In addition, the demand during lead time could be described by a normal distribution that has a standard deviation of 5 tons. Assuming that the manager is willing to accept a stockout risk of no more than 3 percent: - What value of z is appropriate? - How much safety stock should be held? What reorder point should be used?