A company serves as a distributor of products by ordering finished products once a quarter and using that inventory to accommodate the demand over the quarter. If it plans to ease its credit policy for customers, the amount of products ordered for its inventory every quarter will be

Increased to accommodate higher sales levels.
Reduced to offset the increased cost of carrying accounts receivable.
Unaffected if safety stock is part of the current quarterly order.
Unaffected if the JIT inventory control system is used.

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