A product has demand during lead time of 100 units, with a standard deviation of 25 units. What safety stock provides (approximately) a 95% service level?
A) 41
B) 55
C) 95
D) 140
Answer: A
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Indicate whether the statement is true or false
CN Rail agreed to transport $2 million worth of electronic parts for Sony Inc The CN train derailed and the parts were completely destroyed. The limitation clause in the bill of lading limited CN's liability to $50,000
Sony noticed however that the bill of lading had not been signed. As a result A) CN is fully liable for the $2 million loss as it was negligent B) CN can use the limitation clause and is only liable for $50,000 even though it was not signed C) Sony and CN will share the liability equally because the bill of lading was not signed D) CN can only use the limitation clause if it brought the clause to Sony's attention when the deal was made E) CN can only use the limitation clause if the bill of lading was signed and the clause was brought to Sony's attention