Question: 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?