The risk of a stockout is the complement of
A)the service level
B)the chance of using safety stock
C)the chance of underestimating demand
D)the risk of a planned shortage

Question

The risk of a stockout is the complement of​
A)​the service level
B)​the chance of using safety stock
C)​the chance of underestimating demand
D)​the risk of a planned shortage

Quizplus · Accepted Answer

The risk of a stockout is the probability of not having enough inventory to meet demand. This is the complement of the service level, which is the probability of meeting demand. It is important for companies to balance the risk of stockouts with the cost of holding excess inventory to achieve a desired service level.

The Risk of a Stockout Is the Complement Of​

The Risk of a Stockout Is the Complement Of