If Daily Demand Is Constant at 10 Units Per Day,and

question 163

Multiple Choice

If daily demand is constant at 10 units per day,and lead time averages 12 days with a standard deviation of 3 days,95 percent service requires how much safety stock?

• A)28 units
• B)30 units
• C)49 units
• D)59 units
• E)114 units

---

Definitions:

Intrinsic Value

The actual, inherent worth of an asset or company, not necessarily matching its current market value.

Zero-Coupon Bond

A debt security that does not pay interest but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full face value.

Coupon Rate

A bond's yearly interest payout rate, described as a percentage of its face value.

Coupon Rate

The annual interest rate paid on a bond's face value, indicating the amount of periodic payments to the bondholder.