Management Notes

Reference Notes for Management

If demand is not uniform and constant, the stockout risks can be controlled by

If demand is not uniform and constant, the stockout risks can be controlled by

If demand is not uniform and constant, the stock-out risks can be controlled by

 Options:

A. increasing the EOQ.
B. spreading annual demand over more frequent, but smaller, orders.
C. raising the selling price to reduce demand.
D. adding safety stock.
E. reducing the reorder point.

The Correct Answer Is:

D. adding safety stock.

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