Question: Subject: operation management 1. Store A orders on a weekly basis. Its weekly demand is 50 units with a standard deviation of five units. The

Subject: operation management

1. Store A orders on a weekly basis. Its weekly demand is 50 units with a standard deviation of five units. The holding cost is $10 per unit per week and a 0.99 in-stock probability is desired. What will be the effect on Store A's average on-hand inventory if lead time declines from five weeks to three weeks, other parameters remaining unchanged?

please choose the correct answer below the option.

A It will decrease

B it will remain the same

C cannot be determined

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!