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700 The expected number of units on hand just before a replenishment is received

ID: 381668 • Letter: 7

Question

700

The expected number of units on hand just before a replenishment is received and available for use or sale is referred to as

safety stock

unanticipated excess inventory

customer service inventory

unexplained inventory

3 points   

QUESTION 41

Respond refers to the ability to

quickly adjust the supply chain to meet the changing demands of the market

instantly quote prices to potential customers

see changes in market demand before it happens

reply quickly to customer questions

We have a product with a mean demand of 400, with a standard deviation of 100. How many units would we need to keep in stock to maintain a 98% customer service level?

605

500

458

700

700

The expected number of units on hand just before a replenishment is received and available for use or sale is referred to as

safety stock

unanticipated excess inventory

customer service inventory

unexplained inventory

3 points   

QUESTION 41

Respond refers to the ability to

quickly adjust the supply chain to meet the changing demands of the market

instantly quote prices to potential customers

see changes in market demand before it happens

reply quickly to customer questions

Explanation / Answer

Dear student, only one question is allowed at a time. I am answering the first question

Safety stock refers to the number of units kept as excess stock that is kept by an organization to safeguard against the risk of stock out

So, as per above definition, option A is the correct option

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