Given That the Lead Time Is 1 Week and the Sigma

question 36

Multiple Choice

Given that the lead time is 1 week and the sigma is 100 units, if the lead time changes to 2 weeks then the sigma would change to about:

• A) 200 units
• B) 180 units
• C) 160 units
• D) 140 units
• E) 120 units

---

Definitions:

Preferred Stock

A category of corporate ownership that holds a superior right over the company's assets and profits compared to common stock.

Debt

An amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date.

Preferred Stocks

Shares of a company that provide dividends to their holders before common stock dividends are issued and typically do not come with voting rights.

Cumulative

Cumulative refers to the total amount accumulated over a period of time, adding up all parts or elements.