1. Suppose inventory is managed using the order-up-to model. Which of the following actions will certainly lead to a higher order-up-to level? In all cases assume the characteristics of the demand process do not change.

   A. Increase in the target in-stock probability (for the same lead time).

   B. Decrease the target stock-out probability (for the same lead time).

   C. Increase in the lead time (for the same service level).

   		A only
   		B only
   		C only
   		A and B
   		B and C
   		A and C
   		A, B, and C
   		None of the above