The Demand During the Lead-Time Is Normally Distributed with a Mean

question 83

Multiple Choice

The demand during the lead-time is normally distributed with a mean of 40 and a standard deviation of 4.If the company wishes to maintain a 90 percent service level, how much safety stock should be held?

• A)45.12
• B)41.28
• C)1.28
• D)5.12

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Definitions:

Land-Intensive

Describes production processes or industries that require a large amount of land to produce goods or services, compared to labor or capital.

Petroleum Exports

The selling and shipment of petroleum products from one country to another.

Petroleum Imports

These refer to the acquisition of crude oil or refined petroleum products from foreign countries.