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Which of the following is NOT TRUE for inventory management with uncertain demand? Group of answer choices If the mean (average) of the demand distribution
Which of the following is NOT TRUE for inventory management with uncertain demand? Group of answer choices If the mean (average) of the demand distribution increases (everything else remaining unchanged), then the reorder point under the continuous review system increases. In theory, it is impossible to guarantee a 100% service level (i.e., all future demands will be satisfied with certainty). Increasing the safety stock (everything else remaining unchanged) will reduce the service level. If the standard deviation of demand distribution increases (demand uncertainty increases, everything else remaining unchanged), the safety stock required to guarantee the same service level increases
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