A Company Wants to Determine Its Reorder Point (R)

question 28

Multiple Choice

A company wants to determine its reorder point (R) .Demand is variable and they want to build a safety stock into R.The company wants to have a service probability coverage of 95 percent.If average daily demand is 8,lead time is 3 days and the standard deviation of usage during lead time is 2,which of the following is the desired value of R?

• A)About 17.9
• B)About 19.7
• C)About 24.0
• D)About 27.3
• E)About 31.2

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Definitions:

Dance Theater of Harlem

A renowned ballet company and school based in New York City, known for being one of the first African-American ballet companies in the world.

Ballet Corps

The group of dancers in a ballet company who perform together and are not soloists, often synchronizing movements in ensemble work.

Dance Theater of Harlem

A renowned American ballet company and school that promotes diversity in the performance arts, founded in New York City in 1969.

Dance Theater of Harlem

An American professional ballet company and school based in Harlem, New York, known for its inclusive policy for diverse dancers.