Determine safety stock needed to attain risk of stockout


Problem: Given the following information: Expected demand during a lead time = 330 units Standard deviation of demand during a lead time = 35 units Demand during a lead time is distributed Normally: Refer: z-values. a. Determine the safety stock needed to attain a 2 percent risk of stockout during a lead time. (Round the final answer to the nearest whole number.) Safety stock units b. Would a stockout risk of 5 percent require more or less safety stock? 5% stock out risk → (smaller or larger) z → (more or less) SS

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Other Subject: Determine safety stock needed to attain risk of stockout
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