(Solved): Expected demand during lead time \( =300 \) units Standard deviation of lead time demand \( =30 \) ...

Expected demand during lead time \( =300 \) units Standard deviation of lead time demand \( =30 \) units Determine each of the following, assuming that lead time demand is distributed normally: a. The ROP that will provide a risk of stockout of 1 percent during lead time. b. The safety stock needed to attain a 1 percent risk of stockout during lead time. c. Would a stockout risk of 2 percent require more or less safety stock than a 1 percent risk? Explain. Would the ROP be larger, smaller, or unaffected if the acceptable risk were 2 percent instead of 1 percent? Explain. 20. Given this information: Lead-time demand \( =600 \) pounds Standard deviation of lead time demand \( =52 \) pounds (Assume normality.) Acceptable stockout risk during lead time \( =4 \) percent a. What amount of safety stock is appropriate? b. When should this item be reordered?