What amount of safety stock is appropriate

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Reference no: EM132268059

Given this information: Lead-time demand = 615 pounds Standard deviation of lead time demand = 48 pounds (Assume normality.) Acceptable stockout risk during lead time = 4 percent Use Table.

a. What amount of safety stock is appropriate? (Round your answer to the nearest whole number.)

Safety stock

b. How much of this item should be reordered? (Round your answer to the nearest whole number.)

ROP

c. What risk of stockout would result from a decision not to have any safety stock? (Omit the "%" sign in your response.)

Stockout risk

Reference no: EM132268059

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