When Considering Safety Stock and Its Effect on EOQ, Which

question 7

Multiple Choice

When considering safety stock and its effect on EOQ, which of the following statements is false?

• A) Safety stock is equal to the potential excess usage of an input.
• B) The reorder point is affected by the existence of safety stock.
• C) Safety stock decreases inventory holding costs.
• D) Safety stock decreases the potential costs caused by inventory shortages.
• E) Fluctuations in monthly usage of a material indicate the desirability of a safety stock.

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Definitions:

Exocytosis

The process by which cells release substances to the extracellular environment by fusing vesicles with the plasma membrane.

Oral Cavity

The oral cavity refers to the mouth, an opening in the body used for eating, breathing, and vocalizing, encompassing structures such as the teeth, tongue, and palate.

Tobacco Smoke

The smoke produced by burning tobacco products, containing a mix of harmful chemicals and carcinogens.

Respiratory Infections

Diseases caused by pathogens affecting the lungs and airways, which can interfere with breathing.