Business, 30.03.2020 22:52 radcon8099

Based on historical research, a company had the following stockout cost estimates: Probability of a backorder is 20%, lost sale is 50%, and the probability of a lost customer is 30%. The cost per incident of a backorder is $80, lost customer is $20,000. The sales price of the item is $90 with a 15% profit margin. The average order is 60 units. What would be the difference in stockout costs if the company did a recent analysis and learned that their customer reactio

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Based on historical research, a company had the following stockout cost estimates: Probability of a...