Question: In a continuous review inventory model in which the demand during lead time is normally distributed, the relationship between the safety stock for a 96%

In a continuous review inventory model in which the demand during lead time is normally distributed, the relationship between the safety stock for a 96% cycle service level, SS(96%), and the safety stock for an 80% cycle service level, SS(80%), can be written as:

A.

SS(96%) is more than twice SS(80%).

B.

SS(96%) = 0.48 SS(80%).

C.

SS(80%) = 0.53 SS(96%).

D.

SS(96%) = 0.60 SS(80%).

E.

SS(96%) = 1.2 SS(80%).

F.

SS(96%) = 0.47 SS(80%).

G.

SS(96%) = 0.16 SS(80%).

H.

SS(96%) = 1.37 SS(80%).

I.

SS(96%) = 0.91 SS(80%).

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