Which of the following is not one of the factors which influence the decision about how much safety stock a company should hold?
A)Variance of demand during lead time
B)Variance of the length of the lead time
C)Variance of the cost of stockout
D)Desired service level

Question

Quizplus · Accepted Answer

Variance of the cost of stockout is not typically a factor that influences the decision about how much safety stock a company should hold. The other factors - variance of demand during lead time, variance of the length of the lead time, and desired service level - are commonly considered in determining the appropriate level of safety stock.

Which of the Following Is Not One of the Factors