The Need for Safety Stocks Can Be Reduced by an Operation

question 25

Multiple Choice

The need for safety stocks can be reduced by an operation strategy which:

• A)increases lead time
• B)increases lot sizes
• C)decreases ordering costs
• D)decreases lead time variability
• E)None of the above

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Definitions:

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates, including natural, social, and cultural factors.

Self-confidence

A person's belief in their own abilities and judgement, which can influence their performance and the way they are perceived by others.

Risk-taking

The willingness to engage in actions that involve uncertainty and potential loss in pursuit of potential rewards.

Achievement

Achievement refers to the successful accomplishment of a task or goal, often recognized or rewarded due to the effort, skill, or courage involved in its completion.