Which of the Following Statements About Service Level in a Fixed

question 34

Multiple Choice

Which of the following statements about service level in a fixed order quantity inventory system is FALSE?

• A) Service level is the probability that lead time demand will not exceed the reorder level quantity.
• B) Service level policies typically compare the percentage of demand that is met from inventory with the cost of holding inventory.
• C) A 95% service level implies that 95% of the time 100% of demand is satisfied.
• D) There is a linear relationship between service level and reorder level.

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Definitions:

Conscientiousness

A personality trait characterized by organization, dependability, discipline, and a strong sense of duty.

High Goals

Ambitious or challenging objectives set by individuals aiming to achieve significant success or fulfillment.

Work Goals

Objectives or aims related to one's career or job, often focused on achieving certain milestones or accomplishments.

Big Five

A model in psychology that identifies five primary dimensions of personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.