If the Standard Deviation of Demand Is Six Per Week

question 223

Multiple Choice

If the standard deviation of demand is six per week, demand is 50 per week, and the desired service level is 95%, approximately what is the statistical safety stock?

• A) 8 units
• B) 10 units
• C) 16 units
• D) 64 units
• E) Cannot be determined without lead time data.

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Definitions:

Virtue-Based Theories

Ethical theories that focus on the moral character of an individual as the key element of ethical thinking, instead of rules or consequences.

Leader's Character

Relates to the moral qualities and traits that define a person's leadership style and effectiveness.

Utilitarianism

An ethical theory that stipulates the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.

Greatest Good

A principle aiming at the highest benefit or outcome for the greatest number of individuals, often used in ethical decision-making.