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:

Marxist Socialists

Ideologists who follow the teachings of Karl Marx, advocating for a society without classes where the means of production are owned collectively.

Reform Socialists

Advocates a peaceful, evolutionary transition of society to socialism through legal and political reforms rather than revolutionary upheaval.

Anarchism

A political philosophy that advocates self-governed societies based on voluntary, cooperative institutions and the rejection of all involuntary, coercive forms of hierarchy.