The Demand for an Electronic Component Is Normally Distributed with an Average

question 32

Multiple Choice

The demand for an electronic component is normally distributed with an average daily demand of 500 units,and a standard deviation of 50.The lead time for the component is 9 days.If the company sets a reorder point of 4,650 for this component then its service level is approximately

• A)50 percent.
• B)84 percent.
• C)92 percent.
• D)98 percent.

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Definitions:

Titanic

A British passenger liner that sank in the North Atlantic Ocean in 1912 after hitting an iceberg, leading to significant loss of life.

Ocean Floor

The bottom surface of the Earth's oceans, consisting of various geographical features like plains, mountains, and trenches, providing habitat for diverse marine life.

Submersibles

Watercraft designed for underwater operations, typically for research, exploration, or recreational purposes.

Artifacts

Objects made or used by humans, typically of historical or cultural interest, including tools, pottery, and artwork.