Given this information:Expected demand during lead time = 300 unitsStandard deviation of lead time demand = 30 unitsDetermine 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 percentinstead of 1 percent? Explain.

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Given this information:
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.

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