Question: Suppose inventory is managed using the order-up-to model. Which of the following actions will certainly lead to a higher order-up-to level? In all cases, assume

Suppose inventory is managed using the order-up-to model. Which of the following actions will certainly lead to a higher order-up-to level? In all cases, assume the characteristics of the demand process do not change.

I. Increase in the target in-stock probability (for the same lead time).

II. Increase in the lead time (for the same in-stock probability).

a. I only.

b. II only.

c. I and II.

d. None of the above.

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