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Safety stock can be used to curb lead-time variability. True False Large lots of inventory can lead to quantity discounts and lower setup costs, but larger carrying costs. True False A company expects to sell 288 units next year. Annual carrying costs are $10 per unit, ordering costs are $60. and the company operates 365 days a year. Thus, the length of the order cycle = 94.77 workdays. O True O False A company uses 40 units of inventory each week. Allowable risk of a stockout is 5% Average lead time is 3 weeks with a standard deviation of 0.5 weeks. If the distribution of usage is normal, then the reorder point is 192.8 units O True
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