In Order to Determine the Standard Deviation of Usage During

question 3

Multiple Choice

In order to determine the standard deviation of usage during lead time in the reorder point formula for a fixed-order-quantity inventory model, which of the following must be computed first?

• A) Standard deviation of daily demand
• B) Number of standard deviations for a specific service probability
• C) Stock-out cost
• D) Economic order quantity
• E) Safety stock level

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Definitions:

Ice Caps

Large areas covered with ice that are smaller than ice sheets, found in polar and subpolar regions, significantly affecting the regional climate.

Groundwater

Water that fills the cracks and spaces in underground soil and rock layers, supplying wells and springs.

Rivers

Large natural streams of water flowing in channels and emptying into larger bodies of water like lakes, seas, or other rivers.

Groundwater

The water found underground in the cracks and spaces in soil, sand, and rock.