As the safety inventory is increased,
A)fill rate increases and cycle service level decreases.
B)fill rate decreases and cycle service level increases.
C)both fill rate and cycle service level increase.
D)both fill rate and cycle service level decrease.

Question

Quizplus · Accepted Answer

Increasing safety inventory leads to higher product availability, which improves both the fill rate (the percentage of customer demand met without stockouts) and the cycle service level (the probability of not having a stockout in a given cycle).

As the Safety Inventory Is Increased