A Specific Product Has Demand During Lead Time of 100

question 61

Multiple Choice

A specific product has demand during lead time of 100 units, with a standard deviation of 25 units. What safety stock (approximately) provides a 95% service level?

• A) 41
• B) 55
• C) 133
• D) 140
• E) 165

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Definitions:

Manufacturing

The process of converting raw materials or components into finished goods through the use of tools, labor, and machinery.

Assembly

In computing, a low-level programming language that is closely related to the machine code specific to computer architecture.

Packing

The process of arranging and securing products for shipping, storage, or sale, ensuring their protection and efficient handling.

Downstream Activity

Refers to the later stages in the supply chain, typically involving the distribution, sale, and customer service aspects of a business.