If Daily Demand Is Constant at 10 Units Per Day

question 187

Multiple Choice

If daily demand is constant at 10 units per day, and lead time averages 12 days with a standard deviation of 3 days, 95% service requires how much safety stock?

• A) 28 units
• B) 30 units
• C) 49 units
• D) 59 units
• E) 114 units

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Definitions:

Initial Investment

The initial amount of money spent to start a project, acquire an asset, or invest in a financial product.

Connecting Link

A piece or component that joins two or more parts together in a mechanism or system.

Income Statement

A financial report showing a company's revenues, expenses, and profits over a specific period of time.

Balance Sheet

A balance sheet is a financial statement that presents the assets, liabilities, and shareholders' equity of a company at a specific point in time, offering a snapshot of its financial condition.