Scenario 13.3 - We Have No Bananas

question 37

Multiple Choice

Scenario 13.3 - We Have No Bananas
Weekly demand at the Banana Stand is 200 bananas with a standard deviation of 50.The replenishment lead time is 3 weeks from the plantation in Ecuador.The Banana Stand manager orders 1000 bananas when the inventory drops to 600.Each banana costs $0.50.The holding cost the Banana Stand incurs is 40%.
-Use Scenario 13.3 to answer the question.Suppose the Banana Stand loses all demand during a stockout and each lost sale results in a loss of $2 profit.What is the customer service level?

• A)0.9950
• B)0.9905
• C)0.9505
• D)0.9055

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Definitions:

Convergent Thinking

Thinking aimed at finding the one right answer to a problem.

Creativity

The ability to produce original and valuable ideas, solutions, or expressions, often involving imaginative thinking and problem-solving skills.

Multiple Intelligences

A theory proposed by Howard Gardner that suggests individuals possess various kinds of intelligences, including linguistic, logical-mathematical, spatial, bodily-kinesthetic, musical, interpersonal, intrapersonal, and naturalist.

Learning Disability

A neurological disorder that affects an individual's ability to interpret, process, and respond to information, impacting learning skills such as reading, writing, and mathematics.