When Demand Is Constant and Lead Time Is Variable, Safety

question 147

Short Answer

When demand is constant and lead time is variable, safety stock computation requires three inputs: the value of Z, __________, and the standard deviation of lead time.

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Definitions:

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

Marginal Cost

The financial outlay required to produce a further unit of a product or service.

Pollution Abatement

Actions taken to reduce, control, or eliminate pollution from sources in order to protect the environment.