Question $16$

$2$ pts

When there is uncertainty regarding demand and$/$or supply, safety stock $($SS$)$ needs to be held in inventory.

If the order quantity in every order is $($on average$)$ Q$,$ then the average inventory is given by $$

$I=\frac{Q+SS}{2}$

$I=\frac{Q}{2}$

$I=Q+S\frac{S}{2}$

$I=\frac{Q}{2}+SS$