n the order-up-to model, the standard deviation of the order quantities is higher than the standard deviation of demand in one period. O O is lower than the standard deviation of demand in one period. O is equal to the standard deviation of demand in one period. O cannot be compared to the standard deviation of demand in one period.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...
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In the order-up-to model, the standard deviation of the order quantities
is higher than the standard deviation of demand in one period. O
O is lower than the standard deviation of demand in one period.
is equal to the standard deviation of demand in one period.
O cannot be compared to the standard deviation of demand in one period.
Transcribed Image Text:In the order-up-to model, the standard deviation of the order quantities is higher than the standard deviation of demand in one period. O O is lower than the standard deviation of demand in one period. is equal to the standard deviation of demand in one period. O cannot be compared to the standard deviation of demand in one period.
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