The Definition of Service Level Used in This Chapter Is

question 63

Multiple Choice

The definition of service level used in this chapter is

• A) the percentage of all demand that can be satisfied from inventory.
• B) the percentage of all order cycles that do not experience a stockout.
• C) the percentage of demand during the lead-time period that can be satisfied from inventory
• D) None of the alternatives is correct.

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Definitions:

MRPII

Manufacturing Resource Planning, an integrated method of operational and financial planning for manufacturing companies.

Financial Planning

The process of estimating the capital required and determining its competition; it's the process of framing financial policies in relation to procurement, investment, and administration of funds of an enterprise.

Operations And Logistics

The management of the processes involved in producing and distributing goods and services.

EOQ

Economic Order Quantity, a formula used in operations management to determine the optimal order size that minimizes the total inventory holding costs and ordering costs.