Explain the rop that will provide a risk of stockout, Operation Management

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Given this information

Expected demand during lead time = 300 units

Standard deviation of lead time demand = 30 units

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.)

b. The safety stock needed to attain a 1 percent risk of stockout during lead time. (Round your answer to the nearest whole number.)


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