Question: A new manager finds that the average inventory level at the distribution center ( DC ) has increased by 1 0 0 % in the
A new manager finds that the average inventory level at the distribution center DC has increased by in the last two years, coinciding with a increase in the number of stores the DC serves. Each store faces independent demand. Hence, inventory at DC has increased proportionally with its demand. With the targeted service level remaining unchanged at the current inventory level would:
Group of answer choices
Not achieve the goal, suggesting need for holding more safety stock
Be just enough to meet the goal
Overachieve the goal, suggesting room for inventory reduction
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