Mark the correct statements [ ]Lead time is the interval between when an order is placed and when it is received [ ]A reduction in supply can help dramatically reduce required safety stock without hampering product availability [ ]As the uncertainty of supply or demand increases, the required level of safety stocks increases [ ] A shortage occurs in a replenishment cycle only if the demand accumulated during the lead time exceeds the ROP [ ]Safety stock occurs because demand forecasts are accurate and a product shortage can occur if forecast demand exceeds actual demand [ ]With continuous review, inventory is continuously tracked and an order for a batch of size Q is placed at regular time intervals
Mark the correct statements [ ]Lead time is the interval between when an order is placed and when it is received [ ]A reduction in supply can help dramatically reduce required safety stock without hampering product availability [ ]As the uncertainty of supply or demand increases, the required level of safety stocks increases [ ] A shortage occurs in a replenishment cycle only if the demand accumulated during the lead time exceeds the ROP [ ]Safety stock occurs because demand forecasts are accurate and a product shortage can occur if forecast demand exceeds actual demand [ ]With continuous review, inventory is continuously tracked and an order for a batch of size Q is placed at regular time intervals
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter23: Other Topics In Working Capital Management
Section: Chapter Questions
Problem 7MC
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Mark the correct statements
[ ]Lead time is the interval between when an order is placed and when it is received
[ ]A reduction in supply can help dramatically reduce required safety stock without hampering product availability
[ ]As the uncertainty of supply or demand increases, the required level of safety stocks increases
[ ] A shortage occurs in a replenishment cycle only if the demand accumulated during the lead time exceeds the ROP
[ ]Safety stock occurs because demand
[ ]With continuous review, inventory is continuously tracked and an order for a batch of size Q is placed at regular time intervals
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