given this informationlead-time demand 600, Accounting Basics

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given this informationlead-time demand 600

Given this information:

Lead-time demand = 600 pounds

Standard deviation of lead-time demand = 52 pounds (Assume normality.)

Acceptable stockout risk during lead time = 4 percent

a. What amount of safety stock is appropriate?
b. When should this item be reordered?

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Accounting Basics: given this informationlead-time demand 600

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