Question: You are using a fixed time - period inventory model. You are carrying huge amounts of safety stock despite setting a modest 8 0 %
You are using a fixed timeperiod inventory model. You are carrying huge amounts of safety stock despite setting a modest service level, it is probably because
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There is probably a lot of demand variance in this system
The fixed time period model does not include safety stock
The cost of overestimating is greater than cost of underestimating demand, so I should order more than the average
There is probably a lot of lead time variance in this system
There is not enough information given to answer this question
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