Explain what amount of safety stock is suitable

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Reference no: EM1397547

Lead time demand i= 600 kilograms standard deviation of lead time demand is = 52 kilograms (presume normality); Satisfactory stock out risk during lead time = 4%: a) what amount of safety stock is suitable? b) When must this item be reordered? c) What jeopardy of stock out would result from a decision not to have any safety stock?

Reference no: EM1397547

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