What happens to the restocking level when the the standard deviation of demand$$ drops?

A$.$

The restocking level drops slightly because the standard deviation of demand decreased. This is true because the restocking level is determined by the average demand during the reorder period and lead time minus z times the standard deviation of demand during the reorder period and lead time.

B$.$

The restocking level drops significantly because the standard deviation of demand decreased. This is true because the restocking level is determined by the average demand during the reorder period and lead time plus z times the standard deviation of demand during the reorder period and lead time.

C$.$

The restocking level does not change. This is true because the restocking level is determined only by the average demand during the reorder period and lead time.

D$.$

The restocking level picks up significantly because the standard deviation of demand decreased. This is true because the restocking level is determined by the average demand during the reorder period and lead time plus z times the standard deviation of demand during the reorder period and lead time.