To Take into Consideration Demand Uncertainty in Reorder Point (R)

question 34

Multiple Choice

To take into consideration demand uncertainty in reorder point (R) calculations, what do we add to the product of the average daily demand and lead time in days when calculating the value of R?

• A) The product of average daily demand times a standard deviation of lead time
• B) A z value times the lead time in days
• C) The standard deviation of vendor lead time times the standard deviation of demand
• D) The product of lead time in days times the standard deviation of lead time
• E) The product of the standard deviation of demand variability and a z-score relating to a specific service probability

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Definitions:

Contingency Approaches

Management theories suggesting that the best way to handle any situation depends on the specific circumstances, rather than a one-size-fits-all solution.

Leader Behavior

The actions and conduct exhibited by individuals in leadership positions, influencing the group's activities and the achievement of its goals.

Leadership Effectiveness

The degree to which a leader is able to achieve desired objectives or outcomes by influencing others.

Supportive Leadership

Focuses on subordinate needs, well-being, and promotion of a friendly work climate.