Scenario 9.12 Demand = 50,000 Units/week

question 3

Multiple Choice

Scenario 9.12
Demand = 50,000 units/week
Standard deviation of weekly demand = 15,000 units
Average lead time = 8 weeks
Standard deviation of lead time: 3 weeks
Cycle-service level = 80%
A continuous review system is used to control inventory.
A normal distribution table is appended to this exam.
-Use the information in Scenario 9.12.What is the standard deviation of demand during lead time?

• A)greater than 0 but less than or equal to 100,000 units
• B)greater than 100,000 units but less than or equal to 200,000 units
• C)greater than 200,000 units but less than or equal to 300,000 units
• D)greater than 300,000 units

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Definitions:

Agricultural Products

Items that originate from farming and the cultivation of the land, including crops, livestock, and raw materials.

Food For Peace

A U.S. government program that provides food assistance abroad to help support economic stability and encourage peace.

Agricultural Land

Land designated for the primary purpose of agricultural production, including cultivation of crops and livestock rearing.

Developing Countries

Nations with lower levels of industrialization, lower living standards, and higher rates of poverty and economic hardship compared to developed countries.