If Daily Demand Is Constant at 10 Units Per Day

question 49

Multiple Choice

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

• A) 28 units.
• B) 30 units.
• C) 49 units.
• D) 59 units.
• E) 114 units.

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Definitions:

Labor Hours

Labor hours refer to the total number of hours worked by employees within a specified period, often used to measure productivity and labor costs.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the tangible machinery and production equipment used in environments such as factories.

Price Ceilings

a government-imposed limit on how high a price can be charged for a product, service, or commodity.

Black Markets

Unauthorized or illegal trading of goods and services that violate government regulations.