Multiple Choice
Which one of the following is implied by a "lead time" service level of 95 percent?
A) Approximately 95 percent of demand during lead time will be satisfied.
B) Approximately 95 percent of inventory will be used during lead time.
C) The probability is 95 percent that demand during lead time will exactly equal the amount on hand at the beginning of lead time.
D) The probability is 95 percent that demand during lead time will not exceed the amount on hand at the beginning of lead time.
E) none of the above
Correct Answer:

Verified
Correct Answer:
Verified
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