22. Given the following information: LO4 Expected demand during a lead time = 600 kg Standard deviation of demand during a lead time = 52 kg Demand during a lead time is distributed Normally. Acceptable stockout risk during a lead time = 4 percent a. What amount of safety stock is appropriate? b. At what level of inventory should this item be reordered?
22. Given the following information: LO4 Expected demand during a lead time = 600 kg Standard deviation of demand during a lead time = 52 kg Demand during a lead time is distributed Normally. Acceptable stockout risk during a lead time = 4 percent a. What amount of safety stock is appropriate? b. At what level of inventory should this item be reordered?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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