Illustrate what amount of safety stock is appropriate

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Lead time demand i= 600 kilograms; standard deviation of lead time demand is = 52 kilograms (assume normality); Acceptable stockout risk during lead time = 4%: a) What amount of safety stock is appropriate? b)When should this item be reordered? c) What risk of stockout would result from a decision not to have any safety stock?

Reference no: EM13114411

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