Safety stock Operations Management 3510
sonlyIm doing the test right now I need these done as soon as possible.
1.
In your role as production planner, you have experienced too many stock outs on one particular item. This item has 308 pints of demand during the lead time and a standard deviation during the lead time of 10.8 pints.
Calculate the Safety Stock assuming a 5% risk level. (Keep two decimal places in your answer which should be a percentage)
2.
Management has not been pleased with the number of stockouts for a particular item. This item has 550 pounds of demand during the lead time and a standard deviation during the lead time of 55 pounds.
Calculate the Safety Stock assuming a 4% risk level. (Keep two decimal places in your answer)
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