5) Extra inventory that is used to avoid stockouts is known as

A) planned shortages.

B) quantity discounts.

C) safety stock.

D) service level.

6) As the service level increases

A) safety stock increases at a decreasing rate.

B) safety stock increases at an increasing rate.

C) safety stock decreases at an increasing rate.

D) safety stock decreases at a decreasing rate.

7) In PERT, we assume that

A) the times to complete individual activities are known with certainty.

B) all activities are carried out by staff from our own organization.

C) the total cost of a project is independent of the time to complete the project.

D) the total time to complete all activities on the critical path is described by a normal distribution.