Using the Probability Approach to Determine an Inventory Safety Stock

question 5

Multiple Choice

Using the probability approach to determine an inventory safety stock and wanting to be 95 percent sure of covering inventory demand, which of the following is the number of standard deviations necessary to have the 95 percent service probability assured?

• A) 1.28
• B) 1.64
• C) 1.96
• D) 2.00
• E) 2.18

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Definitions:

Reflexes

Automatic, involuntary responses or movements produced by the nervous system in reaction to external stimuli.

Stimuli

External or internal factors that elicit a physiological or psychological response.

Grasping Reflex

An involuntary movement or action where an infant closes their fingers tightly around an object placed in their hand.

Babinski Reflex

A reflex action in infants when the sole of the foot is stroked, causing the big toe to move upward and the other toes to fan out, indicating normal neurological development.