1.In your role as production planner, you have experienced too many stock outs on one particular item. This item has 308 pints of demand during the lead time and a standard deviation during the lead time of 10.8 pints.
Calculate the Safety Stock assuming a 5% risk level. (Keep two decimal places in your answer which should be a percentage)
2.Management has not been pleased with the number of stockouts for a particular item. This item has 550 pounds of demand during the lead time and a standard deviation during the lead time of 55 pounds.
Calculate the Safety Stock assuming a 4% risk level. (Keep two decimal places in your answer)