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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?
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A client comes to you for investment advice on his $500,000 winnings from the lottery. He has been offered the following options by three different financial institutions and reque
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