Question: In the continuous inventory control model, you observe that the mean (average) demand increases but the variability (standard deviation) of the demand stays about the

In the continuous inventory control model, you observe that the mean (average) demand increases but the variability (standard deviation) of the demand stays about the same. Which of the following isTRUE?

  1. The order size will increase and the reorder point will not change.
  2. The order size will decrease and the reorder point will not change.
  3. The order size and the reorder point will increase.
  4. None of the other options.
  5. The order size will not change and the reorder point will increase.

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