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Given this information: Expected demand during lead time = 330 units Standard deviation of lead time demand = 20 units Use Table. (Z Table) 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. (Do not round intermediate calculations. Round your answer to the nearest whole number.)

Safety stock units

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M93136772

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