What amount of safety stock is appropriate

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Reference no: EM13254224

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

Reference no: EM13254224

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