Which one of the following statements is best A The level of

Question

Which one of the following statements is best?

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) When no safety stock is maintained, stockouts will occur during approximately 50% of the cycles.

D) The level of safety stock maintained is greater if mean absolute deviation (MAD) is used rather than standard deviation in estimating forecast errors.

Answer

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