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When the reorder point r exceeds Q, the difference is

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When the reorder point r exceeds Q, the difference is

When the reorder point r exceeds Q, the difference is
a. safety stock c. surplus inventory
b. one or more outstanding orders d. backorders

Q. 2

The significance level of a statistical inference measures:
a. the proportion of times a conclusion about a population will be correct.
b. the proportion of times a conclusion about a population will be wrong.
c. the proportion of times an estimation procedure will be correct.
d. the proportion of times an estimation procedure will be wrong.

Q. 3

An observation that has a strong effect on the regression results is called a(n) _____.
a. residual
b. sum of squares error
c. influential observation
d. None of the answers is correct.

Q. 4

The objective of the EOQ with quantity discounts model is to
a. determine the minimum order quantity required for the maximum discount.
b. balance annual ordering and holding costs.
c. minimize annual purchase cost.
d. minimize the sum of annual carrying, holding, and purchase costs.

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