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.