Which One of the Following Statements Is True

question 4

Multiple Choice

Which one of the following statements is true?

• A)The level of safety stock maintained decreases when the desired cycle-service level increases.
• B)The level of safety stock maintained decreases when the standard deviation of demand during lead time increases.
• C)In a fixed period inventory system, the value of Q is kept the same from one cycle to another.
• D)When demand is uncertain and no safety stock is maintained, stock outs will occur during approximately 50 percent of the cycles.

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