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Compute the Required Safety Stock When Weekly Demand Is 100

Question 57

Multiple Choice

Compute the required safety stock when weekly demand is 100 units,lead time is 2 weeks,the desired service level is 98% (which corresponds to 2.06 standard deviations from the mean) and the standard deviation of demand during lead time is 30 units.


A) 25 units
B) 48 units
C) 62 units
D) 75 units

Correct Answer:

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