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A Company May Wish to Add a Safety Stock If

Question 13

Multiple Choice

A company may wish to add a safety stock if it faces uncertain demand.The inventory analyst should modify the following in light of the safety stock:


A) recompute the average inventory by adding the safety stock amount to the present average inventory balance
B) recompute the reorder point by adding the safety stock to the present reorder point
C) recompute EOQ by adding the safety stock to period demand to arrive at a new usage rate
D) both a and b
E) both b and c

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