Senior Management Thought Customers Expected at Least of 96 Percent

question 17

Multiple Choice

Senior management thought customers expected at least of 96 percent for on-time delivery.However, senior management established a standard of 94 %.The difference is the:

• A)Satisfaction gap.
• B)Performance gap.
• C)Standards gap.
• D)Knowledge gap.

---

Definitions:

Monte Carlo Simulation

An algorithm that utilizes multiple instances of random sampling to generate numerical outcomes, commonly applied in assessing risks and making decisions.

Cumulative Probability

The probability that a random variable is less than or equal to a specific value, representing the accumulation of individual probabilities.

Demand Probability

The likelihood or chance of a product or service being purchased at various levels of demand within a specific period.

Expected Demand

The amount of product or service that consumers are projected to purchase at a given price over a specified period.