Expected demand during lead time = 345 units Standard deviation of lead time demand = 44 units Jse Table. Determine each of the following, assuming that lead time demand is distributed normally: . The ROP that will provide a risk of stockout of 1 percent during lead time. (Round your answer to the nearest whole number.) ROP units
Expected demand during lead time = 345 units Standard deviation of lead time demand = 44 units Jse Table. Determine each of the following, assuming that lead time demand is distributed normally: . The ROP that will provide a risk of stockout of 1 percent during lead time. (Round your answer to the nearest whole number.) ROP units
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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Given this information:
Transcribed Image Text:Expected demand during lead time = 345 units
Standard deviation of lead time demand = 44 units
Use Table.
Determine each of the following, assuming that lead time demand is distributed normally:
a. The ROP that will provide a risk of stockout of 1 percent during lead time. (Round your answer to the nearest whole number.)
ROP
units
b. The safety stock needed to attain a 1 percent risk of stockout during lead time. (Do not round intermediate calculations. Round
your answer to the nearest whole number.)
Safety stock
units
c-1. Would a stockout risk of 3 percent require more or less safety stock than a 1 percent risk?
O Less
More
c-2. Would the ROP be larger, smaller, or unaffected if the acceptable risk were 3 percent instead of 1 percent?
Larger
O Smaller
O Unaffected
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