Using the Probability Approach to Determine an Inventory Safety Stock

question 5

Multiple Choice

Using the probability approach to determine an inventory safety stock and wanting to be 95 percent sure of covering inventory demand, which of the following is the number of standard deviations necessary to have the 95 percent service probability assured?

• A) 1.28
• B) 1.64
• C) 1.96
• D) 2.00
• E) 2.18