When setting safety stocks, if your service level is 99%, that means that 99% of your units demanded will be in stock when needed
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Linear programs must have at least two constraints.
Linear programs must have at least two constraints.
It is possible for a linear program to have more than one op…
It is possible for a linear program to have more than one optimal solution.
The way we make safety stock and reorder point decisions ass…
The way we make safety stock and reorder point decisions assumes that demand is lumpy.
When quantity discounts are available, purchase costs need t…
When quantity discounts are available, purchase costs need to be considered when making the quantity decision.
The service level used when setting safety stock should alwa…
The service level used when setting safety stock should always be at least 90%.
It is possible for a decision variable in a linear program t…
It is possible for a decision variable in a linear program to be equal to a negative value.
In a linear program, you can only have one objective functio…
In a linear program, you can only have one objective function.
Carrying inventory allows us to buy in bulk.
Carrying inventory allows us to buy in bulk.
Raw materials are a type of inventory for which EOQ should b…
Raw materials are a type of inventory for which EOQ should be used to make decisions.