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20 September, 10:46

In a fixed-order-quantity system, when demand is uncertain, using economic order quantity (EOQ) based only on the average demand will result in a low probability of a stockout. a. True b. False

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  1. 20 September, 10:58
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    b. False

    Step-by-step explanation:

    In a fixed-order-quantity system, when there is uncertainty in demand, the average demand will lead to a high probability of a stockout which is in contrast to what is stated in the question. Thus, the answer is false.
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