If Demand for an Item Is Normally Distributed, We Plan

question 103

True/False

If demand for an item is normally distributed, we plan for demand to be twice the average demand and carry 2 standard deviations worth of safety stock inventory.

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Definitions:

Penfield

A reference to Wilder Penfield, a neurosurgeon whose mapping of the brain significantly advanced the understanding of cerebral functions.

Recognition

The cognitive process of identifying and acknowledging the presence or existence of something previously observed or experienced.

Multiple Choice

A type of question or problem that offers several answers from which one must be selected as the correct or best choice.

Matching

A process in which individuals select partners or objects that are similar to themselves in some specific attributes or characteristics.