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Management
QID: #22155
Subject: Management
Status:
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Which of the following is true?
Assuming a normal demand distribution and a service level smaller than 0.5:
a. As the standard deviation increases, the optimal order quantity increases
b. As the standard deviation increases, the optimal order quantity does not change
c. As the standard deviation increases, the optimal order quantity decreases
d. The service level is never smaller than 0.5
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