Question: For a given product, the optimal order quantity is 5 0 0 units, average lead time demand is 2 5 0 units, and the optimal

For a given product, the optimal order quantity is 500 units, average lead time demand is 250 units, and the optimal safety stock is 300 units. Which of the following statements are NOT correct?
Average cycle stocks will be 500 units.
The reorder point will be 800 units.
Total costs could be lowered if the safety stock was reduced to 200 units.
Average inventories will be 1,050 units.
All of the statements listed here are incorrect.

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