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:

Multi-attribute Utility Analysis

A systematic decision-making technique that evaluates and compares alternatives based on multiple attributes or criteria.

Decision Making

The cognitive process of choosing from alternatives to arrive at a conclusion or strategy.

Idea Generation

The process of creating new concepts, solutions, or approaches through brainstorming or other creative techniques.

Choices

Options or alternatives available to an individual from which they must select or decide.