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Assume a continuous review (Q) inventory control system. What should be the effect of the following change on safety stock (assuming that they adjust their order practices accordingly)?

If the company has a shift in corporate strategy and decides to emphasize low cost operations, at the expense of service to the customer, then safety stock should ________

a. increase

b. decrease

c. not be changed (stay the same)

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92482119

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