If Demand During Lead Time Is Normally Distributed,and If the Standard

question 49

Multiple Choice

If demand during lead time is normally distributed,and if the standard deviation of demand during the lead time is 50 units,then to provide an additional 34% service level,the number of additional units that should be held in inventory is ______.

• A)50 (= 50 times 1 standard deviation)
• B)17 (= 50 * 34%)
• C)1,700 (= 50 * 34)
• D)150 (= 50 times 3 standard deviations)

---

Definitions:

Unemployment

The situation when individuals who are able and willing to work are unable to find employment.

Aggregate Demand Curve

A graphical representation of the total demand for goods and services in an economy at different price levels.

Price Level

Refers to the average of all current prices for goods and services in an economy.

Aggregate Quantity

The total amount, sum, or volume of goods or services produced or supplied in an economy at a given overall price level and time.