If Demand for an Item Is Normally Distributed, We Plan

question 27

True/False

If demand for an item is normally distributed, we plan for demand to be twice the average demand and carry two standard deviations worth of safety stock inventory.

---

Definitions:

Raven's Progressive Matrices

A non-verbal group test typically used to measure abstract reasoning and regarded as a non-verbal estimate of fluid intelligence.

Establishing Rules

The process of creating guidelines or principles that govern behavior within a specific context or organization.

Administering

The act of managing or supervising the execution, use, or conduct of something, often involving medications, operations, or policies.

Interpreting

The process of explaining or providing the meaning behind information, data, or observed behaviors.