Management Has Carefully Measured the Standard Deviation of the Demand

question 4

Multiple Choice

Management has carefully measured the standard deviation of the demand of a product and plans to use this to calculate the level of safety stock. If they keep one Standard Deviation of safety stock then
The expected service level should be approximately:

• A) 15%
• B) 35%
• C) 85%
• D) 90%
• E) 100%

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Definitions:

Fair Housing Act

A U.S. law that aims to prevent discrimination when renting or selling housing based on race, religion, sex, national origin, disability, or family status.

Negligent

The failure to take reasonable care or measures to prevent harm or damage, leading to liability for any resulting damages.

Waste

Permanent and substantial injury to a landlord's property.

Legal Liability

The responsibility of an individual or entity for actions or omissions that result in harm or loss to another party, subject to legal sanctions.