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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?
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If you can earn 4 percent, how much will you have to save each year if you want to retire in 35 years with $ 1 million?
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