safety stock is appropriate, Accounting Basics

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?

Posted Date: 3/16/2013 2:05:56 AM | Location : United States

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