Question: A manager is controlling an inventory using a planned backorders model. Right now the optimal order quantity is determined from a critical ratio of 0

A manager is controlling an inventory using a planned backorders model. Right now the optimal order quantity is determined from a critical ratio of 0.9. The manager believes that the ratio may be higher, but is unsure what does a ratio closer to 1 mean, and how it would affect the inventory control. Which of the following statements is/are true? As the critical ratio approaches 1(that is, as the value increases from 0.9 to very close to 1.0), then

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