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n a typical inventory reordering scenario, if the lead time for delivery of the item increases,...

n a typical inventory reordering scenario, if the lead time for delivery of the item increases, the __________ will need to be increased if stockout risk is to remain unchanged.

A: safety stock

B: order quantity

C: ordering cost

D: backorder cost

business   Operations-Management   
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Answer #1

Ans: A: safety stock

In a typical inventory reordering scenario, if the lead time for delivery of the item increases, the safety stock will need to be increased if stockout risk is to remain unchanged.

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