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If Daily Demand Is Constant at 10 Units Per Day

question 93

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If daily demand is constant at 10 units per day, and lead time averages 12 days with a standard deviation of 3 days, 95 percent service requires a safety stock of approximately


Definitions:

Wheat

A cereal grain that is a worldwide staple food, grown in numerous varieties.

Cattle

Large domesticated bovines raised for their milk, meat (beef), or hides.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing an option over another.

Crude Oil

An organic, unprocessed fossil fuel consisting of hydrocarbon reserves and additional organic matter.

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