Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A store follows a periodic review policy by determining an Order Up To Level (OUL) value, which statement below is TRUE? The OUL safety stock

A store follows a periodic review policy by determining an Order Up To Level (OUL) value, which statement below is TRUE? The OUL safety stock value will increase when the customer service level decreases. For example, when the customer service level changes from 95% to 90%. The OUL safety stock value will increase when the inventory is reviewed and ordered less often. For example, when the inventory is reviewed and ordered every 5 weeks instead of every 2 weeks. The OUL safety stock value will increase when the lead time decreases. For example, when the lead time changes from 4 weeks to 2 weeks. The OUL safety stock value will increase when the average demand increases. For example, when the average demand changes from 1,000 units to 5,000 units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these General Management questions