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:

Delayed Rewards

Benefits or gratifications that are received after a time delay rather than immediately, often requiring patience or long-term effort.

Persistence

The continued effort and determination to achieve a goal or overcome obstacles, even in the face of difficulties or delay.

Chain Migration

A process where immigrants from a particular town follow others from that town to a new city or country, creating chains of people connected by a common origin.

Affiliation Needs

The human desire to feel a sense of involvement and belonging within a social group or community.