In an EOQ model with variable demand, as the desired service level increases, how does Z change?

Name: In an EOQ model with variable demand, as the desired service level increases, how does Z change?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Z represents the number of standard deviations needed to achieve the desired service level. As the desired service level increases, the likelihood of a stockout decreases, which means Z must be larger to maintain that service level. Therefore, Z increases as the desired service level increases.

In an EOQ Model with Variable Demand, as the Desired