MCQOPTIONS
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| 1. |
Which of the following relationships hold true for safety stock? |
| A. | the greater the risk of running out of stock, the smaller the safety of stock. |
| B. | the larger the opportunity cost of the funds invested in inventory, the larger the safety stock. |
| C. | the greater the uncertainty associated with forecasted demand, the smaller the safety stock. |
| D. | the higher the profit margin per unit, the higher the safety stock necessary. |
| Answer» E. | |