Which one of the following statements is BEST?
A)The level of safety stock maintained decreases when the desired cycle-service level increases.
B)The level of safety stock maintained decreases when the standard deviation of demand during lead-time increases.
C)When no safety stock is maintained,stockouts will occur during approximately 50% of the cycles.
D)The level of safety stock maintained is greater if mean absolute deviation (MAD)is used rather than standard deviation in estimating forecast errors.

Question

Quizplus · Accepted Answer

When no safety stock is maintained, stockouts will occur during approximately 50% of the cycles.

Which One of the Following Statements Is BEST