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Describes the change in the firm safety stock

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Reference no: EM131247420

A retailer uses a continuous review system (ROP system) to manage its inventory for a product. Suppose the supplier shortens supply lead time by 50%. Which one of the following statements best describes the change in the firm's safety stock (SS)?

  • SS increases.
  • SS does not change.
  • SS decreases by less than 50%.
  • SS decreases by 50% or more

Reference no: EM131247420

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