OPERATIONS MANAGEMENT** DO NOT COPY FROM OTHERS **

Question 8. How many statements are correct for Stochastic Demand? (A) 0 (B) 1 (C) 2 (D) 3 (E) 4 Statement 1. For single period EOQ, if long cost increases, then economic order quantity increases. Statement 2. For continuous review system, if demand variance increases, then statistical safety stock decreases. Statement 3. For continuous review system, if lead time increases, then statistical safety stock decreases. Statement 4. For periodic review system, if inventory period decreases, then the base stock level increases