Answered

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A firm uses the order-up-to model to manage its inventory. It wants to increase its in-stock probability while decrease its holding costs (i. E., reduce its average inventory). Which of the following will help to achieve this goal? (Consider each one on its own.)
(i) Decrease the lead time
(ii) Increase the base stock level
(iii) Increase the average quantity on-order

O Only (i)
O Only (ii)
O Any of them will help
O Only (iii)

Sagot :

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