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3. Which of the following is not a reason to keep extra inventory? a. To prepare for increased demand during Christmas time. b. To serve as buffer to eliminate dependencies between operations. c. To take advantage of a cheaper unit price by purchasing in large quantities d. To allow for smooth sailing despite issues such as unreliable vendors, scrap, and capacity imbalances. To protect against any potential delays in delivery or production. e. For the same cycle service level and the same standard deviation of demand, which of the following would result in the most safety stock? 4. a. Continuous review system: lead time 12 days b. Periodic review system: lead time 10 days, review period 3 days c. Continuous review system: lead time 3 days d. Periodic review system: lead time 8 days, review period 7 days e. Continuous review system: lead time 9 days f. Periodic review system: lead time 2 days, review period 3 days g. Continuous review system: lead time 17 days h. Periodic review system: lead time 3 day, review period -1 days

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