QUESTION $21$

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 the inventory on hand during the lead time be greater than the reorder point

B$.$ is the expected shortage if the reorder point is used

C$.$ it is the probability of stockout if we place an order when the inventory on hand is what we expect to sell during the lead time

D$.$ it is the probability of running out of stock before a new order arrives

E$.$ none of the above