Answer to Question #70998 in Management for abdul

Question

(ii) After analyzing the cost of various options for obtaining bolts, the company recognizes that ,Although the lead time is 3 days, the demand during lead time often varies. The company has kept very careful records and has determined that lead time is normally distributed with a standard deviation of 1.2 unit.
a) What Z value would be appropriate for a 95% service level?







b) What safety stock should the company maintain if it wants a 95% service level?





c) What is the adjusted ROP for the bolts?

Answer 1

Dear abdul, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order