A Firm Decides to Target a 95% Service Level,realizing That

question 51

Multiple Choice

A firm decides to target a 95% service level,realizing that this will require significantly less inventory as compared to a 99% service level.This is an example of a

• A)cost-to-cost trade-off.
• B)modal trade-off.
• C)cost-to-service trade-off.
• D)None of the above

---

Definitions:

TWA

Acronym for Theory of Work Adjustment, a psychological theory describing how individuals adjust to their work environments and how work environments respond to individuals.

Autonomy

The capacity to make an informed, uncoerced decision or the state of being self-governing in personal or professional contexts.

Mismatch

This occurs when there is a lack of alignment or compatibility between two or more things or elements.

Tolerance

The willingness to accept or endure beliefs, behaviors, or practices different from one's own.