The average amount of safety stock depends on the size of


Which of the following statements is TRUE?

a. The average amount of safety stock depends on the size of orders placed with the supplier.

b. The average amount of cycle stock depends on the size of orders placed with the supplier.

c. Safety stock is the amount of inventory on hand when an order from the supplier is placed.

d. Cycle stock is the expected amount of inventory on hand when an order arrives from the supplier.

e. All four answer choices are TRUE.

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