Demand each period is normally distributed and an order-up-to model is used to decide order quantities. Which

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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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Operations Management

ISBN: 9781260547610

2nd International Edition

Authors: Gerard Cachon, Christian Terwiesch

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