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)

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