Q. Given this information: Expected demand during lead time 300 units Standard deviation of lead time demand 30 units Determine each of subsequent, assuming that lead time demand is distributed normally:

a. ROP that will provide a risk of stock out of 1 percent during lead time.

b. safety stock needed to attain a 1 percent risk of stock out during lead time.

c. Would a stock out risk of 2 percent require more or less safety stock than a 1 percent risk? Explain.

Would ROP be larger, smaller or unaffected if acceptable risk were 2 percent instead of 1 percent? Explain.