The distribution of lead time demand for an item is as follows:
|
Led time demand
|
Probability
|
|
80
|
0.20
|
|
100
|
0.25
|
|
120
|
0.30
|
|
140
|
0.25
|
The reorder level is 1.25 times the expected value of the lead demand. The service level is
(a) 2.5% (b) 50%
(c) 75% (d) 100