Stockout Costs

question 33

Multiple Choice

Stockout costs

• A)the costs of not having a product available when demanded by a customer
• B)the costs of carrying inventory
• C)approach that maintains goods should be pulled through the system by present demand
• D)the number of units in the order quantity that minimizes the total cost
• E)the costs of placing and receiving an order

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Definitions:

Process Capability

A quantitative indicator of a process’s capability to generate products that meet established criteria.

Natural Tolerance

The inherent variability present in a process or product under normal conditions, without the influence of external factors.

Specification Limits

Predefined boundaries within which the values of a product, process, or service are expected to lie to meet quality standards.

Flu Symptoms

Indicators of influenza, including fever, cough, sore throat, body aches, and fatigue.