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

---

Definitions:

Production Possibility Frontier

A curve depicting the maximum feasible combinations of two products that a society can produce with existing resources and technology.

Trade

The act of buying, selling, or exchanging goods and services between people, firms, or countries.

Trade

The exchange of goods and services between people or entities, often in the context of international markets.

Resource Constraints

Limitations on the availability of resources, such as time, money, and materials, that affect decision-making and outcomes.