Illustrate what amount of safety stock is appropriate

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Reference no: EM1376053

Q. Given this information:
Lead-Time Demand = 600 pounds
Criterion deviation of lead time Demand = 52 pounds (Suppose normality)
Acceptable stock out risk during lead time = 4 percent

a. Illustrate what amount of safety stock is appropriate?

b. When should this item be reordered?

c. Illustrate what risk of stock out would result from a decision not to have any safety stock?

Reference no: EM1376053

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