Which One of the Following Statements Is True

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.