A Specific Product Has Demand During Lead Time of 100

question 7

Multiple Choice

A specific product has demand during lead time of 100 units,with a standard deviation during lead time of 25 units.What safety stock (approximately) provides a 95% service level?

• A)41
• B)55
• C)133
• D)140
• E)165

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Definitions:

Securities

Financial instruments representing ownership positions in corporations (stocks), creditor relationships with governmental bodies or corporations (bonds), or rights to ownership as represented by an option.

Fair Value

An estimate of the market value of an asset or liability, based on current conditions and knowledgeable, willing parties' transactions.

Assets And Liabilities

Assets are resources owned by a company that have economic value, while liabilities are obligations the company owes to others, reflecting the company's debts or financial responsibilities.

Unearned Rent Revenue

Income received for rent that has been paid in advance by a tenant but not yet earned by the landlord.