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Hewlett-Packard Produces Deskjet Printers for Worldwide Demand at Its Vancouver

Question 1

Multiple Choice

Hewlett-Packard produces deskjet printers for worldwide demand at its Vancouver, WA facility. It is observed that the monthly demand for type AB printers at the European DC averages 15,830 with a standard deviation of 5,624.
-If the delivery lead time from the Vancouver factory is 6 months, how much safety stock of the AB printers should the European DC carry to provide a cycle service level (frequency of no stock-out) of 90%?


A) About 7,207
B) About 43,245
C) About 17,655
D) About 108,756
E) None of the above

Correct Answer:

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