Examlex
Which one of the following is a critical factor in budgeting for a service company?
Stockout
A situation where the demand for a product exceeds its supply in inventory, resulting in an inability to meet customer demand.
Annual Holding Cost
the total expense incurred from storing and maintaining inventory over a year, including warehousing, depreciation, and insurance costs.
Order Quantity
The number of units of a product ordered for production or purchase at one time.
Probability Of A Stockout
The probability of a stockout refers to the likelihood of an item being unavailable for sale or use due to inadequate inventory levels, often impacting customer satisfaction.
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