Which of the Following Statements Is TRUE

question 100

Multiple Choice

Which 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) In a fixed-order-quantity system, the reorder point is the average demand during the lead time, plus the additional safety stock when demand is uncertain.

---

Definitions:

Cumulative Coefficient

A statistical measure that aggregates the influence of multiple factors over time or across different conditions.

Learning Curve

A graphical representation that shows how learning or experience improves efficiency and reduces the time or cost to perform a task over time.

Learning Curve

A graphical representation showing how an increase in learning translates into improved performance over time.

Learning Curve

A graphical representation that shows how the ability to perform a task, usually measured by time or efficiency, improves over time with practice.