Question: As a consequence of finding a more dependable supplier, Dee Co. reduced its safety stock of raw materials by 80%. What is the effect of
As a consequence of finding a more dependable supplier, Dee Co. reduced its safety stock of raw materials by 80%. What is the effect of this safety stock reduction on Dee’s economic order quantity?
a. 80% decrease.
b. 64% decrease.
c. 20% increase.
d. No effect.
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