What could be the risk of stockout would result

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Reference no: EM1345859

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 could be the risk of stockout would result from a decision not to have any safety stock?

Reference no: EM1345859

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