1. Discuss the relationship between service level, uncertainty, safety stock, and order quantity. How can trade-offs between these elements be made? (Ch. 7)

2. What is the difference between the probability of a stock-out and the magnitude of a stock-out? (Ch. 7)

3. Customer-based inventory management strategies allow the use of different availability levels for specific customers. Discuss the rationale for such a strategy. Are such strategies discriminatory? Justify your position. (Ch. 7)