In your role as production planner, you have experienced too many stock outs on one particular item. This item has 262 pints of demand during the lead time and a standard deviation during the lead time of 11.5 pints.
Calculate the Safety Stock quantity assuming that you are only willing to accept being out of stock 2% of the time. (Keep two decimal places in your answer which should be a percentage)
Expert Answer
Given:
mean demand during lead time = 262 pints
standard dev during lead time = 11.5 pints
p(stock out ) = 2%
Answer:
probability that stock remains 98% of time ,
OR
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