Safety Stock Increases When

question 46

Multiple Choice

Safety stock increases when:

• A)probability of a stockout increases.
• B)average demand increases.
• C)delivery speed increases.
• D)demand fluctuations decrease.

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Definitions:

Random Sample

A sample drawn in such a way that every member of the population has an equal chance of being selected.

Null Hypothesis

A statement used in statistical testing, which proposes that no significant difference exists between certain characteristics of a population.

Fuel Economy

Fuel economy refers to the efficiency of a vehicle in using fuel, typically expressed in miles per gallon (mpg) or liters per 100 kilometers (L/100km), indicating how far a vehicle can travel on a specific amount of fuel.

Diesel Engine

An internal combustion engine in which heat produced by the compression of air in the cylinder is used to ignite the fuel.