Question: 1 . The reorder point system is a viable system for items that are based on dependent demand. 2 . There is a direct linear

1. The reorder point system is a viable system for items that are based on dependent demand.
2. There is a direct linear relationship between the cost of holding safety stock and service level desired.
3. There is several commercial software algorithms guaranteed to optimize safety stock levels for any independent demand items.
4. The periodic review system is like filling up your car. Whenever your gas gauge tells you that you are close to empty, you fill it up.
5. In most companies, once the safety stock levels are established, they only need to be reviewed only once every two or three years.

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