Define service level
What will be an ideal response?
The service level is the probability that demand will not be greater than supply during lead time; it is the complement of the probability of a stockout.
You might also like to view...
Should international transportation costs decrease, the effect on international trade would include
a. an increase in the total volume of trade. b. a smaller gain from trade for exporters. c. a decline in exported goods. d. a decrease in the level of specialization in production.
Which of the following statements is inconsistent with return on quality (ROQ) approach?
A) It is not possible to spend too much on quality. B) Quality is an investment. C) Quality improvement efforts must be financially accountable. D) Not all quality expenditures are equally valid.
The following information is taken from Reagan Company's December 31 balance sheet: Cash and cash equivalents$10,019?Accounts receivable 78,422?Merchandise inventories 68,362?Prepaid expenses 5700?Accounts payable$16,550?Notes payable 94,638?Other current liabilities 11,100?If net sales for the current year were $603,500, the firm's days' sales uncollected for the year is: (Use 365 days a year.)
A. 159.4 days B. 79.7 days C. 41.3 days D. 47.4 days E. 69.5 days
Consider the following costs: I. The cost of electricity which is used to power machinery and light the plant. II. Depreciation on the building which houses both the factory and the sales office. Which of the following statements is true?
a. Only statement I is an example of a semivariable cost. b. Only statement II is an example of a semivariable cost. c. Both statements I and I are examples of semivariable costs. d. Neither statement I nor II is an example of a semivariable cost.