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:

IgM

IgM, or Immunoglobulin M, is a type of antibody that is produced by B cells and is the first antibody to appear in response to an initial exposure to an antigen.

Immune Response

The body's defense mechanism against pathogens, involving recognition and elimination of foreign substances.

IgE

Immunoglobulin E, a class of antibodies produced by the immune system in response to allergens, playing a key role in allergic reactions.

Parasitic Worms

Organisms that live on or inside another host organism, causing harm by feeding off the host's nutrients.