If the Standard Deviation of Demand Is Six Per Week

question 223

Multiple Choice

If the standard deviation of demand is six per week, demand is 50 per week, and the desired service level is 95%, approximately what is the statistical safety stock?

• A) 8 units
• B) 10 units
• C) 16 units
• D) 64 units
• E) Cannot be determined without lead time data.

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Definitions:

Resource Maturity

Resource maturity refers to the stage in a resource’s life cycle where it can reliably and sustainably support operations or production levels, typically seen in information technology and natural resources management.

Henri Fayol

A French engineer and theorist, recognized for developing one of the first comprehensive theories of management in the early 20th century.

Henry Mintzberg

A renowned Canadian academic and author known for his work on business and management structures, strategy, and organizational effectiveness.

Henry Ford

An American industrialist and business magnate, founder of the Ford Motor Company, and sponsor of the development of the assembly line technique of mass production.