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Based on available? information, lead time demand for PC jump drives averages 51 units? (normally distributed), with a standard deviation of 5 drives. Management wants a 90 ?% service level. Refer to the standard normal table for? z-values. Z: 0.38, 0.50 0.67 0.84 1.04 1.28 1.41 1.56 1.65 1.75 2.06 2.33
pr(Z) 65 69 75 80 85 90 92 94 95 96 98 99
a. What value of Z should be applied?
b. How many drives should be carried as safety stock?
c. What is the appropriate reorder point?
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