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What amount of safety stock is appropriate

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Reference no: EM13927874

Given this information:
Lead- time demand 600 pounds
Standard deviation of lead time demand 52 pounds (Assume normality.)
Acceptable stockout risk during lead time 4 percent
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: EM13927874

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