A service level of 95% means there is a 0.95 probability: ___________

a. a. of meeting all demand.
b. b. of a stockout.
c. c. that supply will exceed demand.
d. d. that demand will be met during the lead time.

Question

03-08-2021
Business

Answered

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A service level of 95% means there is a 0.95 probability: ___________

a. a. of meeting all demand.
b. b. of a stockout.
c. c. that supply will exceed demand.
d. d. that demand will be met during the lead time.

Sagot :

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DALAU DALAU · Answer 1 · 2021-08-03T13:01:23-04:00

DALAU DALAU

03-08-2021

Answer:

D

Explanation:

Answer = d. that demand will be met during the lead time.

Elaboration:

A service level of certain percentage indicates the probability of meeting the demand dring lead time. This indicator helps businesses to decide on various important decisions such as reorder point, safety stock etc. so that they will able to meet the demand during the lead time.

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