A Retailer Uses a Reorder Point of 60 Units

question 81

Multiple Choice

A retailer uses a reorder point of 60 units.If its usage rate is 10 and its lead time is 6,what is its safety stock?

• A)0
• B).6
• C)6
• D)10

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Definitions:

Data Distribution

Describes how the values in a data set are spread or distributed.

Proportion of Measurements

The fraction or percentage of measurements falling within a specified range in a dataset.

Frequency Tabulation

A statistical method for organizing data into a table to show how often each different value occurs.

Tchebysheff's Theorem

A statistical theorem that provides a bound on the probability that the value of a random variable deviates from its mean by more than a certain multiple of its standard deviation.