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:

Job Evaluation

The process of analyzing and assessing various jobs systematically to ascertain their relative worth in an organization.

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A situation where there is little difference in pay between employees regardless of their skills, experience, or job responsibilities.

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