1. Which of the following outcomes will occur if a firm reduces the level of its safety stock for an item kept in inventory?

A.Inventory holding costs for the item will be reduced

.B.The optimal order quantity for the item will be reduced.

C.The service level for the item will be reduced.

D.All of the above (a, b, and c) will occur.

E.Both (a) and (c) will occur.