Can you assist me with this problem. If possible can you write it out it is easirer to follow along. Thank you **Inventory Management Problem: Calculating Safety Stock and Reorder Point**Based on available information, the lead time demand for PC jump drives averages 51 units (normally distributed), with a standard deviation of 4 drives. Management wants a 90% service level. Refer to the [standard normal table](#) for z-values.a) **What value of Z should be applied?** (Select the appropriate z-value from the dropdown box)b) **How many drives should be carried as safety stock?** ______ units *(round your response to the nearest whole number)*.c) **What is the appropriate reorder point?** ______ units *(round your response to the nearest whole number)*. ### Understanding the Z-Table and Normal Distribution**Graph Explanation:**The graph at the top of the image illustrates a standard normal distribution, which is a bell-shaped curve symmetric about the mean. The horizontal axis represents the z-scores, and the shaded area under the curve indicates the probability, denoted as \( P(Z < z) \). This probability represents the area to the left of a specific z-score \( z \).**Z-Table Overview:**The table below the graph is known as a Z-Table, which provides the cumulative probability for a standard normal distribution up to a given z-score. This table is commonly used in statistics to find probabilities associated with a standard normal distribution.**How to Read the Z-Table:**1. **Rows and Columns:** - The first column (labeled "z") indicates the base z-score value. - The top row indicates the second decimal place of the z-score.2. **Intersection Point:** - To find the probability of a specific z-score, identify the row corresponding to the first decimal value and the column for the second decimal place. - For instance, to find \( P(Z < 0.47) \), look at the row for 0.4 and the column for 0.07, which gives you approximately 0.6808.3. **Example Usage:** - If you want to find the probability \( P(Z < 1.23) \): - Look at the row for 1.2. - Move across to the column for 0.03. - The value at this intersection is 0.8907.**Understanding Probabilities:**- The table values represent cumulative probabilities from the mean to a specific z-score.- These probabilities are useful in hypothesis testing, confidence intervals, and more in statistical analysis.This Z-Table allows users to quickly find probabilities associated with standard normal distribution in educational and practical statistical applications.

Reorder point is the sum value of safety stock and lead time demand. Safety stock calculation…

Answered: a) What value of Z should be applied?

Business

Operations Management

a) What value of Z should be applied?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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