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Q 3. (6 marks) [CLO 2 The purchasing manager for a firm is trying to determine what the safety stock should be for a particular product. She has developed the following table, which gives the distribution of demand during the lead-time and the probabilities: Demand During Probability Lead-Time 50 40 70 80 60 0.20 0.25 0.25 0.20 0.10
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PAGE NO.: DATE: Safe stock 50 2 : 2.5 0.25 11.5 1 6 20 ul Stot t 6 unit PMo dluaf

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