Why does a firm hold safety stock in the absence of safety, Operation Management

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Why does a firm hold safety stock in the absence of safety

a) What is the goal of the EOQ model?

b) Why does a firm hold “safety stock?”

c) What costs are a firm trying to balance when it decides on how much safety stock to hold?

d) In the absence of safety stock, how does a firm determine its re-order point?

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Operation Management: Why does a firm hold safety stock in the absence of safety

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