Scenario 12.2 - Hamsterdam

question 20

Multiple Choice

Scenario 12.2 - Hamsterdam
Marlo Stanfield's operation also uses large quantities of prepaid cell phones,on average 1500 per week with a standard deviation of 145.The lead time for their own brand of prepaid cell phones is three weeks and they have a lot size of 350 phones.To ensure they never run out,they keep a safety stock of 500 phones with Proposition Joe.
-What is the fill rate under this policy?

• A)0.9398
• B)0.9833
• C)0.9921
• D)0.9938

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Definitions:

Business Planning

The process of defining a business's strategy, objectives, and methods to achieve future goals.

Broader Activity

A term that can refer to a wide range of actions or initiatives within a company or organization, stretching beyond its core or routine operations.

Decentralized Divisions

A corporate structure where decision-making and operations are distributed among semi-autonomous units or departments within the organization.

Comprehensive Image

An extensive or complete representation or perception of an object, person, or concept, capturing all its aspects and attributes.