If Both Demand and Lead Time Are Constant,then to Determine

question 45

Multiple Choice

If both demand and lead time are constant,then to determine the inventory level at which to reorder,we need to know ______.

• A)the average demand rate and the lead time
• B)the average demand rate and the purchase price
• C)the purchase price and the safety stock
• D)the safety stock and the lead time

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Definitions:

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases.

Illusory Correlation

A cognitive bias where a person perceives a relationship between variables (typically people, events, or behaviors) even when no such relationship exists.

Correlation Coefficient

A statistical measure that indicates the extent to which two variables fluctuate together. A positive correlation indicates that as one variable increases, the other does too, and vice versa for a negative correlation.

Correlation Coefficients

Statistical measures that quantify the degree to which two variables are related, indicating the strength and direction of a relationship.