Given the Following Information:
Order Quantity = 300; $\sigma _ { d L T }$

question 29

Essay

Given the following information:
Order quantity = 300; $\sigma _ { d L T }$ = 20 units; desired lead time service level = .86.
Find:
(A) the expected number of units short per cycle
(B) the annual service level

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Definitions:

Stock Options

Financial instruments granted to employees or investors, giving them the right, but not the obligation, to buy or sell a company's stock at a predetermined price within a specified period.

Financial Information

Any data related to the financial performance, position, and flows of a business, including income statements, balance sheets, and cash flow statements.

Company-Sponsored Pension Plans

Retirement savings programs established by employers to provide benefits to their employees upon retirement.

Regulation FD

Stands for Fair Disclosure, a rule passed by the Securities and Exchange Commission that aims to prevent selective disclosure by requiring publicly traded companies to disclose material information to all investors at the same time.