Question: Question 10 2 pts Consider the Continuous Review (Q) inventory system with horizontal and random demand. Suppose that the manager raises the service level requirement,

Question 10 2 pts Consider the Continuous Review (Q) inventory system with horizontal and random demand. Suppose that the manager raises the service level requirement, and the reorder point is adjusted accordingly to meet this requirement. The following statements are true, EXCEPT The safety stock increases The probability of stock-out decreases The order quantity increases The expected annual total inventory holding costs increases Question 11 1.5 pts In the periodic review inventory system, the Target Inventory Position is chosen to be the expected demand during the order lead-time plus a safety stock. True False

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