In a Safety Stock Problem Where Both Demand and Lead

question 218

Multiple Choice

In a safety stock problem where both demand and lead time are variable, demand averages 200 units per day with a daily standard deviation of 25, and lead time averages 5 days with a standard deviation of 2 days. How much safety stock is required for a 90% service level?

• A) 517 units
• B) 404 units
• C) 154 units
• D) 500 units
• E) 1,517 units