If Demand Is Not Uniform and Constant, Then Stockout Risks

question 161

Multiple Choice

If demand is not uniform and constant, then stockout risks can be controlled by:

• A) increasing the EOQ.
• B) spreading annual demand over more frequent, but smaller, orders.
• C) raising the selling price to reduce demand.
• D) adding safety stock.
• E) reducing the reorder point.

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Definitions:

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