Figure 7-1 Use the Graph Below to Answer the Question(s)

Figure 7-1
Use the graph below to answer the question(s) .
-Which of the following is true under the Periodic Review System:

A) a lower level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon
B) a higher level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon
C) it is more expensive to administer
D) The only uncertainty is the magnitude of demand during the delivery lead time
E) there are no discrepancies between physical inventory and the stock record

Correct Answer:

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