To Take into Consideration Demand Uncertainty in Reorder Point (R)

question 34

Multiple Choice

To take into consideration demand uncertainty in reorder point (R) calculations, what do we add to the product of the average daily demand and lead time in days when calculating the value of R?

• A) The product of average daily demand times a standard deviation of lead time
• B) A z value times the lead time in days
• C) The standard deviation of vendor lead time times the standard deviation of demand
• D) The product of lead time in days times the standard deviation of lead time
• E) The product of the standard deviation of demand variability and a z-score relating to a specific service probability

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Definitions:

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Korematsu V. United States

1944 Supreme Court case that found Executive Order 9066 to be constitutional. Fred Korematsu, an American-born citizen of Japanese descent, defied the military order that banned all persons of Japanese ancestry from designated western coastal areas. The Court upheld Korematsu’s arrest and internment.

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