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Author Question: If demand is not uniform and constant, then stockout risks can be controlled by (Read 62 times)

gbarreiro

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on: Dec 3, 2019

Question 1

The proper quantity of safety stock is typically determined by
◦ multiplying the EOQ by the desired service level.
◦ minimizing total costs.
◦ carrying sufficient safety stock so as to eliminate all stockouts.
◦ using a single-period model.
◦ setting the level of safety stock so that a given stockout risk is not exceeded.

Question 2

If demand is not uniform and constant, then stockout risks can be controlled by
◦ increasing the EOQ.
◦ reducing the reorder point.
◦ placing an extra order.
◦ adding safety stock.
◦ raising the selling price to reduce demand.
Operations Management (Canadian Edition) ¦ Heizer, Render, Griffin ¦ 1st Edition
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Marked as best answer by gbarreiro on Dec 3, 2019

cascooper22

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Reply #1 on: Dec 3, 2019
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gbarreiro

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Reply 2 on: Dec 3, 2019
Thanks for the timely response, appreciate it

Kedrick2014

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Reply 3 on: Yesterday
Wow, this really help

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