94 a Product's Usage Is Normally Distributed with a Weekly

question 52

Multiple Choice

94. A product's usage is normally distributed with a weekly average demand of 2,000 units and a weekly standard deviation of 125. The product's lead time is 4 weeks. Currently, the reorder point for this product is 8,200. If the company would like to have a service level of 95% for this product then

• A) it must decrease its safety stock by approximately 412 units.
• B) it must decrease its safety stock by approximately 212 units.
• C) it must increase its safety stock by approximately 412 units.
• D) it must increase its safety stock by approximately 212 units.

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Definitions:

Modeling

A social learning theory technique where individuals learn by observing and mimicking others' behavior.

Assertiveness Training

Educational programs or sessions aimed at helping individuals communicate their needs, desires, and boundaries in a respectful and confident manner without aggression.

Coaching

is a process aimed at improving performance and achieving personal or professional goals through guided support and mentorship.

Modeling

A method used in various fields, including psychology and sociology, where individuals learn new behaviors by observing and imitating others.