Solved: How many drives should be carried as safety stock, Strategic Management

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How many drives should be carried as safety stock

Assignment:

1. Demand during lead time for one brand of TV is normally distributed with a mean of 56 TVs and a standard deviation of 18 TVs. What safety stock should be carried for a 95% service level? What is the appropriate ROP?

2. Based on available information, lead time demand for CD-ROM drives averages 250 units (normally distributed), with a standard deviation of 25 drives. Management wants a 98% service level. How many drives should be carried as safety stock? What is the appropriate ROP?

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Strategic Management: How many drives should be carried as safety stock

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