Question: In a reorder point system (fixed order quantity), suppose that the uncertainty with respect to demand has gone up (i.e. standard deviation of demand per
In a reorder point system (fixed order quantity), suppose that the uncertainty with respect to demand has gone up (i.e. standard deviation of demand per period has increased). Which of the following is the resulting change (to maintain the same service level)?
| the reorder frequency must be raised | ||
| the reorder level must be raised | ||
| the reorder quantity must be raised | ||
| the estimate of mean lead time demand must be raised |
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