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.
Correct Answer:

Verified
Correct Answer:
Verified
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