In a Safety Stock Problem Where Both Demand and Lead

question 89

Multiple Choice

In a safety stock problem where both demand and lead time are variable, demand averages 200 units per day with a daily variance of 64, and lead time averages 6 days with a standard deviation of 1 day. How much safety stock is required for a 95% service level?

• A) 331 units
• B) 201 units
• C) 417 units
• D) 1,617 units
• E) 1,530 units

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Definitions:

1,2,4,5-tetrahydroxybenzene

A benzene ring substituted with four hydroxyl groups at the 1, 2, 4, and 5 positions, known for participating in complex chemical reactions.

Dependent Variable

The variable in an experiment or model that is expected to change in response to changes in independent variables.

Relative Change

Relative Change represents the ratio of the change in a quantity to the original amount, often expressed as a percentage to indicate how much something has increased or decreased relative to its initial value.

Coefficient Of Correlation

A numerical measure that represents the strength and direction of a linear relationship between two variables.