As the service level increases
A)safety stock increases at a decreasing rate.
B)safety stock increases at an increasing rate.
C)safety stock decreases at an increasing rate.
D)safety stock decreases at a decreasing rate.

Question

Quizplus · Accepted Answer

As the service level increases, the risk of stockouts decreases but the variability of demand and lead times remains constant. This means that safety stock needs to increase at an increasing rate to maintain the higher service level.

As the Service Level Increases