Scenario 9.12 Demand = 50,000 Units/week

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

Correct Answer:

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