If Daily Demand Is Normally Distributed with a Mean of 15

question 9

Multiple Choice

If daily demand is normally distributed with a mean of 15 and standard deviation of 5,and lead time is constant at 4 days,a 90 percent service level will require how much safety stock?

• A)7 units
• B)10 units
• C)13 units
• D)16 units
• E)26 units

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Definitions:

Liabilities

Financial obligations or debts a company owes, which are expected to be paid in the future.

Increase Assets

The act of adding value to a company's assets through acquisitions, improvements, or successful business operations, leading to growth in the company's overall resources.

Decrease Assets

A decrease in assets refers to a reduction in the value or quantity of the resources owned by an entity, which can result from sales, disposals, or consumption in operations.

Accounting Equation

The accounting equation is the fundamental framework of double-entry bookkeeping, stating that Assets = Liabilities + Equity, ensuring financial statements are balanced.