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T those statements that are true and anF those that are false 1)In a stochastic continuous inventor model, if the leadtime decreases by a factor

"T" those statements that are true and an"F" those that are false

1)In a stochastic continuous inventor model, if the leadtime decreases by a factor at k, the required safety stock also decreases by a factor of k. 2)If the order quantity is increased in a continuous review policy, both the service level and the fill rate increase. 3)The expected shortage per replenishment cycle (ESC) is the average units of demand that are not satisfied from inventory in stock per replenishment cycle. 4)The order-up-to level represents the number of units we should order at the review point. 5)Periodic Review Policies require lower levels of safety stock than Continuous Review Policies. 6)The safety stock increases as leadtime variability increases. 7)Both fill rate and service level increase as the safety stock is increased 8)For the same safety stock, an increase in lot size increases the fill rate and the service level. 9)In the Periodic Replenishment Policy, inventory status is checked at regular intervals. 10)A stockout occurs if the demand during the lead-time is larger than the reorder point.

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