A What is the expected demand during lead time b What is the

Question

a. What is the expected demand during lead time?

b. What is the standard deviation of demand during lead time?

c. What is the average safety stock?

d. What is the reorder point?

e. If the company desired to lower the reorder point, which of these initiatives would lower it by the greatest amount – reducing the lead time by 10%, reducing the standard deviation of lead time by 10%, or reducing the service level by 10%?

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