A Service Level of 95% Means There Is a 0

question 36

Multiple Choice

A service level of 95% means there is a 0.95 probability

• A)of meeting all demand.
• B)of a stockout.
• C)that supply will exceed demand.
• D)that demand will be met during the lead time.

---

Definitions:

Due Diligence

A comprehensive appraisal or investigation undertaken to evaluate the risks and merits before entering into an agreement or transaction.

Failure Analysis

The process of collecting and analyzing data to determine the cause of a failure, often with the goal of preventing it in the future.

Troubleshooting Report

A troubleshooting report documents the process of diagnosing and resolving problems with equipment, software, or systems, outlining the steps taken and solutions found.

Justification Reports

Documents written to explain the reasoning behind a decision or recommendation, often including evidence and analysis.