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Artician Artician
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6 years ago
In setting the reorder point for an item with variable demand, a service level of 95% will imply which of the following?
A) Stockouts may occur only 5 times during the phase of 100 inventory cycles.
B) 5% of the supplier shipments will be late.
C) There is a 0.05 probability that the forecasted demand is not accurate.
D) The forecast demand will be accurate 95% of the time.
Textbook 
Managing Supply Chain and Operations: An Integrative Approach

Managing Supply Chain and Operations: An Integrative Approach


Edition: 1st
Authors:
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delite_40delite_40
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#1
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6 years ago
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