The ratio of shortage cost to shortage plus excess cost is 0.67. The ratio of shortage cost to shortage plus excess cost is 0.8. The ratio of shortage cost to shortage plus excess cost is 0.5. The standard deviation of demand during lead time equals the daily standard unearned revenue deviation of demand times the square root of the lead time. The probability is 95 percent that demand during lead time will not exceed the amount on which one of these would not be a factor in determining the reorder point? hand at the beginning of lead time. A) The EOQ.B) The lead Insurance Accounting time.C) The variability of demand.D) The demand or usage rate.
- The probability is 95 percent that demand during lead time will not exceed the amount on hand at the beginning of lead time.
- The ratio of shortage cost to shortage plus excess cost is 0.67.
- The ratio of shortage cost to shortage plus excess cost is 0.5.
- The probability is 95 percent that demand during lead time will not exceed the amount on hand at the beginning of lead time.
- The standard deviation of demand during lead time equals the daily standard deviation of demand times the square root of the lead time.