A Product's Usage Is Normally Distributed with a Weekly Average

question 74

Multiple Choice

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:

pH

A scale used to specify the acidity or basicity of an aqueous solution, with values ranging from 0 (highly acidic) to 14 (highly basic) and 7 being neutral.

Hydrochloric Acid

Hydrochloric Acid is a strong, corrosive acid found in the stomach that aids in digestion by breaking down food and killing pathogens.

Sodium Hydroxide

A highly caustic metallic base and alkali salt, commonly used in industrial processes and as a drain cleaner.

Buffer

A substance in a solution that tends to lessen the change in hydrogen ion concentration (pH) that otherwise would be produced by adding an acid or base.