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

question 17

Multiple Choice

The demand during the lead-time is normally distributed with a mean of 40 and a standard deviation of 4.If they have calculated a reorder point of 46.60 units,what service level are they assuming?

• A)85 percent
• B)90 percent
• C)95 percent
• D)97.5 percent
• E)None of the above

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Definitions:

Net Capital

The difference between a firm's total assets and its total liabilities, essentially representing the owner's equity.

Net Capital Outflows

The difference between a nation's outflow of capital to foreign countries and its incoming capital from abroad, showing how much a country's residents are investing in foreign assets compared to how much foreigners are investing in the domestic country.

Deficit Change

The amount by which a government, company, or individual's spending exceeds income over a particular period of time.

Exchange Rate

The price of one country's currency expressed in terms of another country's currency.