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
AThe chart shows a stepwise function because the daily demand drops at a constant rate
BAs soon as the inventory level crosses the reorder point line a new order should be immediately placed
CWhen the inventory level drops below the line that separates the light green area from the darker green area we have a shortage
DIf safety stock is half the reorder point we know that shortages cannot occur, however, the holding cost can be very high
EAll of the above are correct
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