A firm uses the order-up-to model to manage its inventory, Ask an Expert

Management Studies

A firm uses the order-up-to model to manage its inventory. It wants to increase its in-stock probability while decreasing its holding costs (i.e., reducing 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

Only (i)

Only (ii)

Only (iii)

(i) and (ii)

(i) and (iii)

(ii) and (ii)

Any of them will help (that is (i), (ii) or (iii))

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91574406

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