Demand each period is normally distributed and an order-up-to model is used to decide order quantities. Which of the following influences the chosen order-up-to level (i. e., a change in which of the following would change the chosen order-up-to level)?
I. The mean of demand in one period
II . The standard deviation of demand over L+1 periods
III. The target in-stock probability
a) Only I
b) Only II
c) Only II
d) I and II
e) I and III
f) II and III
g) I, II and III
Answers: 2
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Demand each period is normally distributed and an order-up-to model is used to decide order quantiti...
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