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

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Definitions:

Utilitarianism

Ethic that proposes that the value of something is determined by its usefulness. The greatest good for the greatest number of people constitutes the guiding principle for action in a utilitarian model of ethics.

Mandatory Immunizations

Vaccinations that are required by law or policy for individuals in specific settings or populations.

Ethical Framework

A structured set of guidelines or principles designed to help individuals and organizations make moral decisions.

Quality of Life

An individual's overall assessment of their well-being, encompassing physical, psychological, social, and environmental aspects of life.