Question: Demand each period is normally distributed and an order-up-to model is used to decide order quantities. Which of the following influences the chosen order-up-to level
Demand each period is normally distributed and an order-up-to model is used to decide order quantities. Which of the following influences the chosen order-up-to level (i.e., a change in which of the following would change the chosen order-up-to level)?
I. The mean of demand in one period.
II. The standard deviation of demand over (L + 1) periods.
III. The target in-stock probability.
a. Only I.
b. Only II.
c. Only III.
d. I and II.
e. I and III.
f. II and III.
g. I, II, and III.
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