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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Definitions:

Permutations

The arrangement of all or part of a set of objects, with regard to the order of the arrangement. For example, all possible orders in which a set of objects can be arranged.

Deserts

Arid and dry landscapes that receive extremely low amounts of precipitation, making them unlikely to support much life.

Response Combinations

The possible outcomes or sets of responses available in a study or experimental design, often observed in surveys, psychological experiments, or statistical analyses.

Political Policy

A plan or course of action, as of a government, political party, or business, intended to influence and determine decisions, actions, and other matters.