Which One of the Following Is Implied by a "Lead

question 80

Multiple Choice

Which one of the following is implied by a "lead time" service level of 95 percent?

• A) Approximately 95 percent of demand during lead time will be satisfied.
• B) The probability is 95 percent that demand during lead time will not exhaust the inventory.
• C) The probability is 95 percent that demand during lead time will exactly equal the amount on hand at the beginning of lead time.
• D) The probability is 95 percent that demand during lead time will not exceed the amount on hand at the beginning of lead time.
• E) None of the choices.

---

Definitions:

Government Decision Making

The process by which government bodies decide on policies, laws, and budget allocations among other official actions.

Budget Deficits

A financial situation where a government's expenditures exceed its revenues, leading to increased borrowing or reduced spending.

Public Debt

The total amount owed by the federal government to the owners of government securities; equal to the sum of past government budget deficits less government budget surpluses.

Regulatory Capture

A situation where regulatory agencies are dominantly influenced by the industries they are charged with regulating, often leading to biased decisions favoring industry.