Which One of the Following Descriptions Best Defines the Cycle-Service

question 8

Multiple Choice

Which one of the following descriptions best defines the cycle-service level as a measure of customer service?

• A) The preferred proportion of annual demand instantaneously filled from stock
• B) The number of stockouts tolerated per year
• C) The preferred proportion of days in the year when an item is in stock
• D) The desired probability of not running out of stock in any one inventory cycle

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Definitions:

Canada Savings Bonds

Canadian government savings products that are available for a limited period each year and offer a guaranteed rate of interest.

Per Annum

A term used to represent an annual occurrence or an amount over the course of a year.

Cashing In

The process of selling or converting a financial asset or investment for cash.

Combined Equivalent Value

The total value derived from combining several financial instruments or calculations to understand their overall effect.