What amount of safety stock is appropriate when should this


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?
c. What risk of stockout would result from a decision not to have any safety stock?

Solution Preview :

Prepared by a verified Expert
Operation Management: What amount of safety stock is appropriate when should this
Reference No:- TGS01236500

Now Priced at $15 (50% Discount)

Recommended (98%)

Rated (4.3/5)