In a Reorder Point Problem Where Both Demand and Lead

question 91

Multiple Choice

In a reorder point 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. What should the reorder point be for a 95% service level?

• A) 330 units
• B) 201 units
• C) 417 units
• D) 1,617 units
• E) 1,531 units

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Definitions:

Dynamic Address

A changing IP address assigned by an internet service provider to a device each time it connects to the internet.

IP Address

A unique string of numbers separated by periods that identifies each device using the Internet Protocol to communicate over a network.

Circuit Switching

A method of communication where a dedicated channel or circuit is established for the duration of a transmission between two endpoints.

PGP

Pretty Good Privacy, an encryption program that provides cryptographic privacy and authentication for data communication.