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By Incorporating the Demand Uncertainty into EOQ Model, the Concept

Question 12

Multiple Choice

By incorporating the demand uncertainty into EOQ model, the concept of service level is introduced.Service level is associated with how much safety stock to be carried.There are two types of service levels.___________ uses the probability of stocking out as a measure while _____________ uses expected number of units short per reorder cycle.Choose the correct words to fill in the blanks.


A) Cycle service level/customer service levels
B) Cycle service level/order service levels
C) Customer service levels/cycle service level
D) Order service levels/cycle service level

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