Respuesta :
According to the probability calculation, 70 units would be the safety stock needed to cover a stockout risk of 3%.
The definition of normal distribution
"A probability distribution that is symmetric around the mean, demonstrating that data near the mean are more likely to occur than data distant from the mean," is known as a normal distribution.
The Z-score is "a numerical statistic that expresses a value's relationship to the mean (average) of a group of values, quantified in terms of standard deviations from the mean."
How is probability determined?
To start, we will calculate the standard deviation, which will be:
50 = 1.34 × x × ✓4
x = 50/(1.34 × 2)
x = 18.66
As a result, the safety stock that would offer a 3 percent stockout risk will be:
= 1.88 × 18.66 × 2
=70 units.
Learn more about Z-score: https://brainly.com/question/15016913
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