Stockout frequency refers to:
A) the probability that a firm will not have inventory available to meet customer orders.
B) a single event where a firm will not have inventory available to meet customer orders.
C) the cost of sales that a firm will have when insufficient inventory is available to meet customer orders.
D) the percentage of days in which inventory necessary to meet customer orders is missing.

Question

Quizplus · Accepted Answer

Stockout frequency refers to the probability that a firm will not have inventory available to meet customer orders. It is a measure of how often a stockout occurs, not a single event or a cost.

Stockout Frequency Refers To