Question 7 The total system inventory level can be reduced if inventory is stored at a central location, but only when: O stock-out sensitivity is low. O stock-out sensitivity is high. O demand is positively correlated. O demand is negatively correlated. C 1 pts O 27 When deciding on where to locate facilities, transportation economies refer to: O locating facilities to ensure an area is fully covered. O locating facilities to ensure redundancy so that the network can handle disruptions. O locating facilities so that networks are more centralized. O a choice between locating facilities closer to resources vs. closer to markets. 2