Business, 06.08.2021 15:50 anisabellanda
A company recently lowered its service performance from 99% product availability to 97% product availability. The change saved the company exactly $1million per year in inventory carrying cost. Senior management now wants to lower the service level to 95% from 97%. Such a further change is likely to save (explain!):
a) less than $1 million
b) about another $1 million
c) more than $1 million
Answers: 3
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