The Square-Root Rule Is Based on a Number of Reasonable

question 12

Multiple Choice

The square-root rule is based on a number of reasonable assumptions. Which of the following is not one of these assumptions?

• A) Inventory transfers between stocking locations are common practice.
• B) Lead times do not vary, and thus inventory centralization is not affected by inbound supply uncertainty.
• C) Customer service levels, as measured by inventory availability, are constant.
• D) Demand at each location is normally distributed.

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Definitions:

Informal Communication System

The unofficial and casual manner in which information circulates within an organization, beyond formal channels like memos.

Unionized Organizations

Workplaces where employees are members of a union, which represents their interests in negotiations with the employer.

Formal Grievance Process

An official, structured procedure for employees to file complaints or disputes for resolution, typically involving defined steps and rights for both parties.

Multi-Step Appeal

A persuasive technique that involves leading the audience through several logical steps before making the final argument or call to action.