Question: Consider the following chart Reference: Order Cycle Chart Which if the following is correct with respect to this chart A . The chart shows a

Consider the following chart
Reference: Order Cycle Chart
Which if the following is correct with respect to this chart
A.The chart shows a stepwise function because the daily demand drops at a constant rate
B.As soon as the inventory level crosses the reorder point line a new order should be immediately placed
C.When the inventory level drops below the line that separates the light green area from the darker green area we have a shortage
D.If safety stock is half the reorder point we know that shortages cannot occur, however, the holding cost can be very high
E.All of the above are correct

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