In a Safety Stock Problem Where Both Demand and Lead

Multiple Choice

In a safety stock problem where both demand and lead time are variable, demand averages 200 units per day with a daily variance of 64, and lead time averages 6 days with a standard deviation of 1 day. How much safety stock is required for a 95% service level?

A) 331 units
B) 201 units
C) 417 units
D) 1,617 units
E) 1,530 units