The definition of service level used in this chapter is
a. the percentage of all demand that can be satisfied from inventory.
b. the percentage of all order cycles that do not experience a stockout.
c. the percentage of demand during the lead-time period that can be satisfied from inventory
d. None of the alternatives is correct.
b
You might also like to view...
The advantages of an in-house advertising department include the following, except:
A) greater expertise and talent on creating ads B) lower costs C) the message can be aligned with the brand and other company communications D) the CEO and upper management can work closely with the marketing team
Total quality management
A. refers to quality control in not only the production of the firm's products, but also to quality control of all suppliers. B. requires adoption of concurrent engineering principles in product design. C. is the control of quality in all areas of the organization, not just production. D. refers to the control of quality in all functional areas of the firm.
Torrence Inc has recently calculated the inventory turnover for the current year to be 30. In prior years, the same ratio was always lower. Which of the following statements would be the best interpretation for the reason for the ratio's change?
A) The company had less sales in the current year than in prior years. B) The company purchased less inventory in the current year than in prior years. C) The company took fewer days to sell its inventory in the current year than in prior years. D) The company took more days to sell its inventory in the current year than in prior years.
A product line includes a group of closely related product items that are considered to be a unit because of marketing, technical, or end-use considerations.
Answer the following statement true (T) or false (F)