A Specific Product Has Demand During Lead Time of 100

question 190

Multiple Choice

A specific product has demand during lead time of 100 units, with a standard deviation during lead time of 25 units. What safety stock (approximately) provides an 85% service level?

• A) 41
• B) 26
• C) 133
• D) 126
• E) 165

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Definitions:

Supply

Refers to the total amount of a product or service available for purchase at any given time.

Consumer Tastes

Preferences and demands of consumers that influence their purchasing behavior, often shaped by trends, culture, and personal experiences.

Determinant of Supply

Factors that affect the quantity of a good or service that producers are willing to sell at a given price, such as production technology, input prices, and number of sellers.

Technology of Production

The methods, processes, and systems used to produce goods and services, often focusing on efficiency and innovation.