What rop would provide a stockout risk of 10 percent during, Operation Management

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What rop would provide a stockout risk of 10 percent during

Ned's Natural Foods sells unshelled peanuts by the pound. Historically, Ned has observed that daily demand is normally distributed with a mean of 80 pounds and a standard deviation of 10 pounds. Lead time also appears normally distributed with a mean of eight days and a standard deviation of one day.

a. What ROP would provide a stockout risk of 10 percent during lead time?

b. What is the expected number of units (pounds) short per cycle?

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