Consider a Periodic Review Inventory System with a Lead Time

question 28

Multiple Choice

Consider a periodic review inventory system with a lead time of two weeks and a review period of seven weeks. If the standard deviation of weekly demand is 200 and the desired cycle-service level is 86%, what should the safety stock equal?

• A) 305
• B) 516
• C) 600
• D) 648
• E) 1944

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Definitions:

Somatic

Relating to or affecting the body, distinct from the mind or emotions.

Parasympathetic

A division of the autonomic nervous system responsible for relaxation and conserving energy, often referred to as the "rest and digest" system.

Sympathetic

Relating to the sympathetic nervous system, part of the autonomic nervous system that orchestrates the body's rapid involuntary response to dangerous or stressful situations.

Sympathetic

Pertaining to the part of the autonomic nervous system that increases heart rate, constricts blood vessels, and raises blood pressure, typically in response to stress.