The Mismatch Between the Timing of Customer Demand and Supply

question 29

Multiple Choice

The mismatch between the timing of customer demand and supply chain lead times is what drives the need for:

• A)safety stock.
• B)anticipation inventory.
• C)cycle stock.
• D)hedge inventory.

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Definitions:

Rank Sums

A non-parametric statistical measure used to compare the distributions of two independent samples by ranking all observations together and then summing ranks for observations belonging to each sample.

Standardized Test Statistic

A calculated value used to determine the relative distance of a data point or sample from the mean of a population, expressed in terms of the standard deviation of the population.

Positive Differences

The result obtained when subtracting a smaller number from a larger number in each pair of a data set.

Negative Differences

Refers to the results obtained when subtracting a number from another number that is smaller, resulting in a negative value.