It Is Week 1 and There Are Currently 20 as in Stock

question 9

Multiple Choice

It is week 1 and there are currently 20 As in stock. The MPS calls for 300 As at the start of week 5. If there are scheduled receipts planned for week 3 and week 4 of 120 As each and A has a lead time of 1 week when and how large of an order should be placed to meet the requirement of 300 As?

• A) Week 1, 300 A s
• B) Week 1, 40 A s
• C) Week 5, 40 A s
• D) Week 4, 40 A s
• E) Week 4, 300 A s

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Definitions:

P(Z > 1.9)

The probability that a standard normal random variable Z exceeds the value of 1.9, commonly used in statistical analysis to find tail probabilities.

Mean

The average of a set of numbers, calculated by dividing the sum of the values by their count.

Standard Deviation

A gauge that evaluates the breadth of fluctuation or spread of dataset values in relation to the central value.

Normally Distributed

This probability distribution is distinguished by its symmetric nature around the mean, showcasing higher frequencies of data points near the mean than those at greater distances.