A firm uses the level production planning approach to produce a product family to stock. Senior management has requested that the finished-goods inventory for the product family be reduced by 18% over the sales and operations planning horizon. Which of the following statements best describes the relationship between total demand and total production required for the product family over the planning horizon?

A company wanting to maintain a high level of customer service at the lowest inventory carrying cost should place safety stock in:

Which of the following criteria is the most meaningful measure when evaluating the effectiveness of distribution systems in fulfilling customer needs?