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.

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Definitions:

Manufacturing Equipment

Machinery and tools that are used in the process of producing goods.

Manufacturing Overhead

The indirect costs associated with manufacturing that are not directly tied to the production of specific goods, such as maintenance, utilities, and salaries of supervisors.

Sheet Steel

Thin, flat steel that is made in sheets, used in a wide range of industries including construction and manufacturing.

Cost Of Goods Manufactured

The manufacturing costs associated with the goods that were finished during the period.