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Given this information: Expected demand during lead time = 300 units Standard de

ID: 402468 • Letter: G

Question

Given this information: Expected demand during lead time = 300 units Standard deviation of lead time demand = 30 units Determine each of the following, assuming that lead time demand is distributed normally: a. The ROP that will provide a risk of stockout of 1 percent during lead time. (Round your answer to the nearest whole number.) ROP_____ Units? b. The safety stock needed to attain a 1 percent risk of stockout during lead time. (Round your answer to the nearest whole number.) Safety ________ Units?

Explanation / Answer

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