If the Standard Deviation of Demand Is Six Per Week

question 223

Multiple Choice

If the standard deviation of demand is six per week, demand is 50 per week, and the desired service level is 95%, approximately what is the statistical safety stock?

• A) 8 units
• B) 10 units
• C) 16 units
• D) 64 units
• E) Cannot be determined without lead time data.

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Definitions:

Reliability Coefficient

A measure indicating the consistency of a set of scores obtained from repeated measurements of the same phenomenon.

Parallel Forms Reliability

A measure of reliability obtained by administering different versions of an assessment tool to the same group of individuals and correlating the results.

Internal Consistency Reliability

A measure of the extent to which all items in a test measure the same concept or construct.

Test-Retest Reliability

A measure of consistency where the same test is administered to the same participants at two different points in time to assess the stability of the results.