The Demand for an Electronic Component Is Normally Distributed with an Average

question 72

Multiple Choice

The demand for an electronic component is normally distributed with an average daily demand of 500 units and a standard deviation of 50.The lead-time for the component is 9 days.If a service level of 95% is desired then the company's reorder point for this component is approximately

• A)3,785 units.
• B)4,500 units.
• C)4,627units.
• D)4,747units.

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Definitions:

Balanced Scorecard

A strategic planning and management system used to align business activities to the vision and strategy of the organization.

Life Cycle Assessment

A method used to evaluate the environmental impacts of a product, process, or service, from raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling.

ISO 14040

A standard within the ISO 14000 family that specifies the framework and principles for conducting and reporting on life cycle assessment studies.

Environmental Issues

Concerns related to the impact of an organization’s actions on the natural environment, including pollution, resource depletion, and habitat destruction.