The Addition of a Safety Stock to the EOQ Model

question 10

True/False

The addition of a safety stock to the EOQ model does not change the total inventory costs.

---

Definitions:

Service Gap

Results when a service fails to meet the expectations that customers have about how it should be delivered.

Knowledge Gap

The difference in understanding or information between individuals or groups, especially in relation to access or comprehension of specific subject matter.

Tangibles

Physical items or goods that can be seen, touched, and measured, as opposed to services or digital products.

Responsiveness

The ability of a company, service, or product to react quickly and positively to customer needs or changes in the market.