If the standard deviation of demand is 10 and the desired service level is 0.90,then what is the safety stock?
A)9
B)10
C)12.8
D)16.5
E)23.3

Name: If the standard deviation of demand is 10 and the desired service level is 0.90,then what is the safety stock? A)9 B)10 C)12.8 D)16.5 E)23.3
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Question

Quizplus · Accepted Answer

Safety stock = Z score * standard deviation 
The Z score for a service level of 0.90 is 1.28. 
Therefore, Safety stock = 1.28 * 10 = 12.8. 
Hence, the correct option is C.

If the Standard Deviation of Demand Is 10 and the Desired