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If Demand Is Not Uniform and Constant, Then Stockout Risks

Question 161

Multiple Choice

If demand is not uniform and constant, then stockout risks can be controlled by:


A) increasing the EOQ.
B) spreading annual demand over more frequent, but smaller, orders.
C) raising the selling price to reduce demand.
D) adding safety stock.
E) reducing the reorder point.

Correct Answer:

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