Asked by Angela Mejias on Jun 17, 2024
Verified
Use Scenario 13.3 to answer the question.Suppose the Banana Stand decides to cut their lot size in half.What is the new customer service level?
A) .65
B) .60
C) .55
D) .50
Customer Service Level
A measure of the quality of service provided to customers, often evaluated through metrics like response time, satisfaction rates, and resolution effectiveness.
Lot Size
The quantity of units produced or purchased in a single batch or order, affecting production costs and inventory levels.
- Determine optimal levels of inventory and grasp their implications for financial performance and service standards.
- Understand the implications of different supply sourcing strategies on supply chain flexibility and cost.
Verified Answer
IT
Iyonna TaylorJun 23, 2024
Final Answer :
D
Explanation :
The customer service level is determined by the safety stock and reorder point. Cutting the lot size in half does not directly affect the customer service level, which is primarily influenced by the variability in demand and lead time, as well as the reorder point relative to the demand during lead time. Without changing the reorder point or the variability in demand and lead time, the customer service level remains unchanged.
Learning Objectives
- Determine optimal levels of inventory and grasp their implications for financial performance and service standards.
- Understand the implications of different supply sourcing strategies on supply chain flexibility and cost.