QUESTION $19$

Consider the following normal distribution curve modeling the daily demand of a continuous review inventory system.

Reference: Bell Curve

Which of the following is correct with respect to the white area under the curve?

A$.$ is the probability of stockout if lead time exceeds the reorder point

B$.$ is the expected shortage if the reorder point is used to trigger a new order

C$.$ it is the probability of stockout if we place orders at fixed time periods

D$.$ it is the probability of running out of stock in one inventory order cycle

E$.$ none of the above