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The fixed-period inventory system requires more safety stock than a fixed-quantity system because:

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7 years ago

The fixed-period inventory system requires more safety stock than a fixed-quantity system because:

The fixed-period inventory system requires more safety stock than a fixed-quantity system because:
A) a stockout can occur during the review period as well as during the lead time.
B) setup costs and holding costs are large.
C) replenishment is not instantaneous.
D) this model is used for products that have large standard deviations of demand.
E) this model is used for products that require very high service levels.

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Operations Management

Edition: 10^th

Authors: Heizer, Render

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Apatix Author

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7 years ago

Thanks for your help!!

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You make an excellent tutor!

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Good timing, thanks!

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