Multiple choice

The distribution of lead-time demand for an item is as follows ||| |---|---| | Lead time demand| Probability| | 80 | 0.20 | | 100 | 0.25 | | 120 | 0.30 | | 140 | 0.25 |

The reorder level is 1.25 times the expected value of the lead-time demand. The service level is

  1. 25%

  2. 50%

  3. 75%

  4. 100%

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation