To Take into Consideration Demand Uncertainty in Reorder Point (R)

question 34

Multiple Choice

To take into consideration demand uncertainty in reorder point (R) calculations, what do we add to the product of the average daily demand and lead time in days when calculating the value of R?

• A) The product of average daily demand times a standard deviation of lead time
• B) A z value times the lead time in days
• C) The standard deviation of vendor lead time times the standard deviation of demand
• D) The product of lead time in days times the standard deviation of lead time
• E) The product of the standard deviation of demand variability and a z-score relating to a specific service probability

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Definitions:

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A type of self-esteem characterized by a fragile sense of self that is highly vulnerable to external criticism and challenges, often leading to defensive reactions.

Rewards

Incentives or benefits given in response to an action or behavior, intended to reinforce or increase the likelihood of that behavior.

Productivity

The efficiency at which goods or services are produced, often measured as the amount of output per unit of input (like labor, time, or materials).

Passive

A state or quality of acceptance or submission without active response or resistance.