Question

In a probabilistic inventory model, which distribution is commonly used to model demand?

• A. Uniform distribution
• B. Normal distribution
• C. Exponential distribution
• D. Binomial distribution

Hint:

The Normal distribution is symmetrical, which simplifies the calculation of safety stock for both over-demand and under-demand scenarios.
Always look for the standard normal distribution tables ($z$-tables) to quickly find the service factor $z$ associated with a given service level.

Answer 1

The Correct Option is B