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
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