Given this information: Expected demand during lead time = 350 units Standard de
ID: 2747534 • Letter: G
Question
Given this information: Expected demand during lead time = 350 units Standard deviation of lead time demand = 30 units Use 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
Explanation / Answer
Reorder Point=d*L+z*Sd*sqrt(L)
where d=avg. daily demand
L=lead time
Sd=Std dev of daily demand
z= number of std dev corresponding to service level probability
z at 99%=2.33
ROP=350*L+2.33*30*Sqrt(L)
Safety stock=2.33*30*Sqrt(L)
The lead time data is missing, please place the lead time data and calculate the answer
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