The Formula for Calculating Safety Stock When an Estimate of Demand

question 115

Multiple Choice

The formula for calculating safety stock when an estimate of demand during lead time and its standard deviation are known is?

• A) SS = lead time * standard deviation
• B) SS = lead time * z
• C) SS = z* standard deviation
• D) SS = z*σ_dl
• E) SS = σ_dl* mean

---

Definitions:

Paired Associates

Nonsense syllables presented in pairs in experiments that measure recall.

Encodes

The process by which genetic information is chemically converted into RNA and protein in living organisms, or, more broadly, the process of converting data into a particular form.

Short-Term Memory

The capacity for holding a small amount of information in mind in an active, readily available state for a short period of time.

Capacity

The maximum amount that something can contain or the ability of something, whether physical or mental, to perform, produce, or withstand.